General Cable Announces Decision by European Commission in Power Cables Case

  General Cable Announces Decision by European Commission in Power Cables Case

Business Wire

HIGHLAND HEIGHTS, Ky. -- April 2, 2014

General Cable Corporation (NYSE: BGC) announced today that the European
Commission has issued a decision on the liability of producers of submarine
and underground high voltage power cables for infringement of European
competition law. The Power Cables Case was initiated by a Statement of
Objections or preliminary complaint in June 2011 addressed to twelve (12)
company groups involving twenty-seven (27) companies alleging that the
companies had participated in a cartel to restrict competition on submarine
and underground high voltage projects from 1999 to 2009. The Statement of
Objections further alleged that two subsidiaries of General Cable, its Spanish
subsidiary, Grupo General Cable Sistemas, and its French subsidiary, Silec
Cable, had participated in the cartel for different periods of time. In
particular, the Commission claimed that Grupo General Cable Sistemas was
involved from January 2003 to May 2007, and that Silec Cable was involved for
ten (10) months after its acquisition from Safran SA by General Cable in
December 2005.

Following formal responses to the Commission’s Statement of Objections and a
hearing, claims of infringement against Grupo General Cable Sistemas have been
dismissed for lack of evidence of alleged cartel activity. With regard to
Silec Cable, the Commission’s decision imposed a fine of 1,852,500  Euros
(approximately $2.5 million) related to the period Silec Cable has been owned
by General Cable. This fine was based on participation that allegedly
commenced well before Silec Cable was acquired by General Cable.

General Cable is currently reviewing the European Commission’s decision and is
considering whether to appeal the Commission decision based on established
precedent. General Cable will also continue to pursue its rights to claim full
indemnification for the Silec Cable fine under the previously disclosed terms
of the acquisition agreement with Safran SA executed in 2005.

General Cable (NYSE:BGC), a Fortune 500 Company, is a global leader in the
development, design, manufacture, marketing and distribution of copper,
aluminum and fiber optic wire and cable products for the energy, industrial,
construction, specialty and communications markets. For more information about
General Cable visit our website at www.generalcable.com.

Contact:

General Cable Corporation
Len Texter, Vice President, Investor Relations, 859-572-8684
 
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