Xinmao bid for Draka not backed by state support: Dutch

AMSTERDAM (BestGrowthStock) – The financial backing offered by Minsheng Bank to China’s Xinmao bid for Dutch cable maker Draka (DRAK.AS: ) is based on “commercial reasons” and not state support, the Dutch economy minister said on Friday.

“There is nothing to indicate at the moment that there is more to this than commercial considerations,” economy minister Maxine Verhagen said in written answers to Dutch parliamentary questions.

Verhagen added the ministry will keep a close eye on the interests of the Dutch economy, employees and shareholders, but stressed that the government plays no role in judging a company’s business or economic reasons for launching a bid.

Draka has recommended that its shareholders accept a bid from Italy’s Prsymian (PRY.MI: ) while Xinmao group is still preparing its formal 1 billion euro ($1.3 billion) offer.

($1=.7626 Euro)

(Reporting by Aaron Gray-Block; Editing by Sara Webb)

Xinmao bid for Draka not backed by state support: Dutch