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Takeover Offer on Pirelli Cables Australia Ltd.

PIRELLI GROUP LAUNCHES A CASH TAKEOVER OFFER
ON PIRELLI CABLES AUSTRALIA LTD. AT A$ 0.85 PER SHARE

16 October 2000 – Pirelli Cavi e Sistemi
S.p.A, a member of the Pirelli Group, announces its decision to
make a A$ 0.85 per share cash takeover offer for all of the issued
ordinary shares of Pirelli Cables Australia Limited (PCAL) to which
it is not entitled. Pirelli holds 51% of the Shares of PCAL.

The cash offer price of A$ 0.85
represents:

  • a premium of 73,5% to Friday 13 October’s closing PCAL share
    price of A$ 0.49;
  • a premium of 66% to the weighted average PCAL share price of A$
    0.51 during the last one month;
  • a multiple of 18 times 1999 after tax earnings (before abnormal
    items).

The offer will be made via an off-market bid and
will be accompanied by a Bidder’s Statement. The offer will be
conditional upon sufficient acceptances being received to enable
the balance of the outstanding shares to be compulsorily acquired,
Foreign Investment Review Board approval and other standard
conditions.

If the takeover offer on 49% of the share capital will be
successful, the total consideration for Pirelli Cavi e Sistemi will
amount at approx. A$ 35.8 million. The completion of this operation
is expected by the end of the current year.

Categories: Institutional