Nov. 10 (Bloomberg) --Prysmian SpA declined the most in almost seven months in Milan trading after Goldman Sachs Group Inc. sold shares in the world’s second-biggest cable maker.

Prysmian fell as much as 1.25 euros, or 9.7 percent, to 11.65 euros, the steepest decline since April 20, and traded at 11.7 euros, down 9.3 percent, as of 3:12 p.m. local time.

Prysmian (Lux) said in a statement that it sold 25.1 million shares and that Goldman Sachs sold 872,181 shares. Prysmian owners have agreed to a 60-day lockup, according to the statement. Today’s share sale represents a total stake of 14.4 percent, according to the statement.

The company’s owners sold the stock at 12 euros per share, according to a person familiar with the offer who asked not to be identified.

Intermonte Sim SpA downgraded the stock to “underperform” from “neutral.” The sale of a large stake “at these prices casts some doubt over the achievement of consensus estimates for 2010 in such an uncertain environment,” the brokerage said in a note today.

Mediobanca Securities, which has an “outperform” rating on Prysmian, noted that a November 2007 agreement with Taihan Electric Wire Co. expires this week. Under the accord, Taihan bought 9.9 percent of Prysmian from Goldman Sachs and the South Korean company agreed not to change its stake for two years.

To contact the reporters on this story: Francesca Cinelli in Milan at fcinelli@bloomberg.net;

Last Updated: November 10, 2009 09:24 EST