UPDATE: Hagemeyer says Sonepar's $3.5 billion bid is too low
Industrial Distribution staff -- Industrial Distribution, 10/9/2007 5:48:00 AM
Hagemeyer NV said the $3.5 billion acquisition offer Sonepar SA made Tuesday is too low for a deal that would create the world's largest electrical distributor."Hagemeyer is of the opinion that this price significantly undervalues the company," the Dutch electrical distributor said in a statement. "We intend to meet in order to allow Sonepar to clarify its intentions."
The bid followed days of speculation that the French electrical distributor’s homeland competitor, Rexel Group, would tender an offer. Those rumors pushed Hagemeyer’s stock as much as 20 percent higher.
The Sonepar bid, which would increase the company’s sales by two-thirds if accepted, fueled further speculation that a bidding war between the French giants was in the offing. Rexel said it would “evaluate its options,” according to the Bloomberg news service, while Hagemeyer said it is still deciding how to respond to the Sonepar offer.
Analysts said Sonepar and Rexel each have much to gain from the purchase.
“There's a strong industrial logic to buy Hagemeyer for both Sonepar and Rexel,” Fortis analyst Olivier Macquet told Bloomberg. “Rexel may be tempted to counter bid, even though it wasn't the initial plan. Hagemeyer is one of the last few large players to buy.”
Sonepar ranked first on INDUSTRIAL DISTRIBUTION’s 2007 Top 10 Electrical Distributors list with revenues of $12.4 billion last year, with Rexel taking the second slot with sales of $12.3 billion. Hagemeyer ranked 10th on ID’s 2007 Big 50 list of distributors, with sales of $1.88 billion last year.
Talkback
Related Content
Related Content
Sponsored Links
View All Blogs
