Hengtong Optic-Electric Axes Plan to Acquire General Cable, Conceding to Competing Bidder

Hengtong Optic-Electric Axes Plan to Acquire General Cable, Conceding to Competing Bidder

Dou Shicong

Date: Thu, 12/07/2017 - 13:58 / source:Yicai
Hengtong Optic-Electric Axes Plan to Acquire General Cable, Conceding to Competing Bidder
Hengtong Optic-Electric Axes Plan to Acquire General Cable, Conceding to Competing Bidder

(Yicai Global) Dec. 7 -- Chinese cable company Jiangsu Hengtong Optic-Electric Co. [SHA:600487] has axed its plan to acquire General Cable Corp. [NYSE:BGC], conceding to a competing bidder.

Hengtong Optic-Electric said yesterday that it would not further pursue a purchase of the American company. Another potential buyer made a surprisingly high offer, the Suzhou-based group said.

Prysmian Group [BIT:PRY], the world’s largest cable company, announced on Dec. 4 that it would pay USD30 per share, or about USD3 billion, for General Cable. A merger in 2011 created the Italian firm.

General Cable’s share price rose 35.09 percent that day and closed at USD29.45. It ended the Dec. 5 trading session at USD29.85.

Hengtong Optic-Electric said on Nov. 24 that it was preparing to buy General Cable, an enterprise with an important market position in the global high-voltage cable, submarine cable and automobile industries with a large presence in North America, Europe and Latin America.

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Keywords: General Cable, Hengtong Optic-electric, Prysmian Group, Draka