Any AFC Sweetener: Not from T&B: Acquiror Remains Committed to Deal-On Definitive’s Terms

Full of lurking unknowns, the $500 million takeout of AFC Cable Systems, Inc., is, nevertheless, expected by the Street to see greener pastures than the nearly six-month old definitive with Thomas & Betts Corp. (T&B). Market wishes aside, though, T&B won’t be the one to up the ante. “T&B is steadfast against altering the terms of the deal,” said a source close to T&B. Speaking last week, he said, “I’m much more convinced [now] that there will be a deal involving AFC.” It is not a question of whether a deal gets done, it’s what deal gets done, he said. A month ago, however, he would have said that AFC Chairman and CEO Ralph Papitto, who owns 23% of AFC, did not want to do a combination, he added. “He was making noise that he was unhappy with the deal,” he said. “Then, the stock fell out of bed towards the end of June when arbitrageurs thought Ralph was going to deep-six the deal,” he said.