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Prysmian: to acquire General Cable in 3 billion dollar deal.

(CercleFinance.com) - Italy's Prysmian, the world's biggest cable maker, is set to further strengthen its leadership by acquiring US rival General Cable in a transaction worth approximately 3 billion dollars.

Prysmian said on Monday that it has entered into a definitive merger agreement to buy the Highland Heights, Kentucky-based company, for 30 dollars per share in cash.

The price represents a premium of approximately 81% on the 16.55 dollar closing price on 14 July of General Cable, the last day of trading before General Cable announced its review of strategic alternatives, the Milan-based group said.

When the strategic review was announced in last summer, General Cable said the plans included a potential sale of the business.

The transaction will include debt and some of General Cable's other liabilities.

Note that Prysmian generated sales of over 7.5 billion euros in 2016, while General Cable saw sales crumble 15% to under 3.9 billion dollars last year.

Prysmian shares were down 1.5 percent on the Borsa Italiana market.

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