Bloomberg: Buyers balk at Anixter’s asking price

Bloomberg News followed up on its earlier reports that wire and data cable distributor Anixter was looking for a buyer, saying that the company is having a hard time finding someone willing to pay the price the company is asking. The report says Anixter is looking for $115/share, about 13% above yesterday’s close of $101.52, and French electrical distribution giant Rexel, rumored to be interested, wasn’t willing to pay more than $110.

“While Anixter, whose products are installed in office buildings and data centers, stands to profit from a pickup in non-residential construction, the private-equity funds weren’t convinced of its growth prospects, two people said. Sales, which fell slightly to $6.23 billion in 2013, should grow in the “mid-single digit” range, the company said in February.”

Bloomberg’s sources said the sale effort, led by Goldman Sachs, is likely to be terminated.