Prysmian, Draka begin merger talks

June 29, 2009--In what some market analysts suggest is an attempt to unseat France's Nexans as the world's largest cable manufacturer, Italy-based Prysmian—the second largest cable producer--has begun preliminary discussions with Draka Holding NV for a possible stock-for-stock merger of the two mega companies.

June 29, 2009--In what some market analysts suggest is an attempt to unseat France's Nexans as the world's largest cable manufacturer, Italy-based Prysmian—the second largest cable producer--has begun preliminary discussions with Draka Holding NV for a possible stock-for-stock merger of the two mega companies.

Draka is believed to be the third leading cable manufacturer in the world, with headquarters in Amsterdam and U.S. optical-fiber manufacturing operations in Claremont, NC.

In April, AFL Telecommunications acquired Draka's optical groundwire business based in Germany.

Both companies say discussions are at their earliest stage, with no guarantee that a transaction will take place; however, some market analysts believe that if the talks succeed, Prysmian may eventually acquire Draka outright.

One suggested long-range scenario includes Draka adding elevator and aircraft-related cable manufacturing to its U.S. optical-fiber operations, with Prysmian focusing on its two main divisions of energy and telecom.

Prysmian reportedly has about 12,000 employees in 53 plants worldwide, while Draka employs nearly 10,000 workers in 40 manufacturing facilities.

On the Web: www.prysmian.com; www.drakaamericas.com

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