Prysmian, Draka merger talks hit snag

August 4, 2009--Merger talks between Italian cable maker Prysmian and Dutch cable giant Draka Holding NV, which began earlier this summer, have slowed considerably. In recently published reports, Prysmian CEO Valeria Battista terms the problems "very large."

A major hurdle in the proposed all-share takeover appears to be meeting requirements of a European Union (EU) directive on cross-border mergers.

While talks are continuing, no timetable has been set for striking a deal. Prysmian says a merger would be considered only when the two companies' board of directors agree that the conditions are well-defined.

If consummated, a merger could make Prysmian the world's largest cable producer. Draka, which is the third leading cabling manufacturer, has U.S. optical-fiber manufacturing operations in Claremont, NC.

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