Prysmian readying all-cash bid for General Cable; could also seek to buy Nokia's Alcatel Submarine Network
Prysmian [BIT:PRY], the Milan-based cable company, is readying its final all-cash bid for Kentucky-based General Cable [NYSE:BGC] in a move that could be valued at USD 1.1bn or more, according to a newswire report.
Reuters cited sources familiar with the matter in reporting today that Prysmian wants to beat rivals by submitting a binding bid and beginning exclusive discussions by the middle of this month with General Cable.
The Italian company is seen as the frontrunner in a bid, with Nexans [EPA:NEX] of France also interested, and NKT [CPH:NKT] as well as Chinese suitors also viewed as potential bidders, the article reported. Binding bids will be due in the next few days, the sources told Reuters.
A source reportedly told the newswire that Prysmian would expand its balance sheet if a deal is right, because acquisitions and mergers are viewed as critical to its own growth.
JPMorgan was hired in July by General Cable for a strategic review. The company has a USD 1.08bn market cap.
At the same time, Prysmian is working on a bid to buy Alcatel Submarine Networks from Nokia [HEL:NOKIA], sources told Reuters, which added that Nokia would not comment.
The sources indicated General Cable was a higher priority to Prysmian than is the Nokia network, the article reported.
The sources also told Reuters that Prysmian wouldn't need to raise funds to finance these acquisitions, as its revenues for 2016 were nearly EUR 7.5bn.