Barclays on Cooper (CBE)/Eaton (ETN) Deal: Industry Implications - Is Hubbell (HUB-B) Up Next?

Barclays on Cooper (NYSE: CBE)/Eaton (NYSE: ETN) Deal: Industry Implications

Analyst, Scott R. Davis, expected consolidation in Industrials, but found the deal a little surprising. Also, this combination is theoretically compelling. Davis felt that Coopers (NYSE: CBE), Thomas & Betts (NYSE: TNB) and Hubbell (NYSE: HUB-B) have always been attractive takeover targets and now on HUB-B is left. The Barclays analyst didn't speculate on how HUB-B might play out, but did make a few notes:

1) Global scale is critical - not easy competing outside the U.S. without a brand that's established, with necessary size to manage gov't and customer channels and demands; 2) Ability to bid on projects and financial stability to be directly involved in the bidding process; and 2b) Access to capital, which is harder than even and has made some small players dry up and disappear.

Davis feels that about half of the companies in the Industrial space could be viewed as takeover candidates, but HUB-B may be one to watch.

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