Goldman Sachs Provides Color on Cooper Industries, Neutral

Goldman Sachs provided color on Cooper Industries (NYSE: CBE). In a research report published today, Goldman commented on the company's offer to acquire its UK rival Laird.

In the report, Goldman States, "Last week, CBE shares underperformed following the announcement that it had proposed to the Board of Laird PLC, (LRD.L, covered by Adam Pinckard), to acquire LRD for 185p/share, or about $800 mn... The offer was a 35% premium to LRD's Wednesday close, and 0.6X 2010 EV/sales and 8.7X EBITDA, and on 2011 consensus estimates, 0.5X EV/sales and 6.9X EBITDA. Laird's Board rejected the offer, though Laird's stock is still trading above the offer price.

At the moment, Goldman has a Neutral rating on Cooper's stock. On Friday, Cooper closed the week at $59.40.