STOCKS NEWS EUROPE-Prysmian down; Draka deal doubt

Tue Aug 4, 2009 11:15am BST

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Italian cable maker Prysmian (PRY.MI) shares fall more than 3 percent after doubts surfaced on its possible takeover of Dutch rival Draka Holdings DRAK.AS and on profit-taking after first-half results had pushed the stock to a nine-month high on Monday.

"There is some small uncertainty on Draka. The stock was implying 100 percent (probability) of the deal being done," one broker says.

Prysmian and Draka announced preliminary talks at end of June on a tie-up. On Monday Prysmian said talks are continuing, gave no timing, and said one hurdle is meeting requirements of an EU merger directive.

The results on Monday, which beat analysts expectations for adjusted EBITDA profit, led to a series of positive broker notes on Tuesday, including Cheuvreux upgrading the stock to its selected list, from "outperform".

A second broker says the results are "good". He notes the Draka deal represents 1 or 2 euros on the share price.

At 1013 GMT, Prysmian is down 3.1 percent at 12.06 euros.

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