General Cable Corporation to Acquire the Global Wire and Cable Business of Freeport-McMoRan Copper & Gold Inc., Further Building a Worldwide Leader in Energy Infrastructure Cable



    HIGHLAND HEIGHTS, KY., September 12 /CNW/ - General Cable Corporation
(NYSE:   BGC) (the Company) announced today that it has agreed to acquire the
global wire and cable business of Freeport-McMoRan Copper & Gold Inc. (NYSE:  
FCX) (Freeport), which operates as Phelps Dodge International Corporation
(PDIC). PDIC was acquired by Freeport as part of the acquisition of Phelps
Dodge Corporation in March 2007. The purchase price is approximately $735
million, subject to adjustment as provided in the Stock Purchase Agreement. In
addition to utilizing its available cash, the Company has secured commitments
from Merrill Lynch Capital Corporation to provide an increased secured
revolving line of credit and an additional secured interim loan necessary to
fund the purchase price.

    On an annual basis, General Cable estimates that the acquisition will
contribute approximately $1.4 billion in revenues at current metal prices and
is expected to be accretive to earnings in the first full year by $0.20 to
$0.30 cents per share based upon 2006 results. The combined companies expect
to derive additional benefits over time through cross-selling opportunities,
logistics and purchasing synergies, and the implementation of best practices
throughout the entire organization. PDIC's performance in the first half of
2007 continued to trend positively.

    Key Strategic Rationale

    The acquisition offers General Cable an opportunity to further enhance
its global scale and worldwide leadership in the wire and cable industry with
critical mass in many emerging markets. PDIC brings a number of very positive
characteristics, including:

    --  Complementary geographic coverage focused on energy infrastructure,
construction and industrial cables serving emerging and faster growing markets
in Latin America, sub-Saharan Africa, Southeast Asia, as well as India and
China.

    --  Experienced management team doing business in 45 countries around the
world.

    --  Demonstrated expertise in aerial and buried high-voltage transmission
systems.

    --  Addition of a well-recognized, highly respected brand in the wire and
cable industry with more than 50 years of history.

    --  Shared business philosophies of safety, Lean manufacturing, and a
"One Company" approach to internal operations and customers.

    --  Accretive in year one with significant upside potential.

    "The acquisition of PDIC is truly a unique opportunity, greatly
accelerating our initiative to expand into many of the faster growing emerging
economies of the world," said Gregory B. Kenny, President and Chief Executive
Officer of General Cable. "We are effectively merging one company principally
concentrated in North America, Western Europe and Oceania with one focused in
Latin America, sub-Saharan Africa and Southeast Asia. In addition, PDIC shares
many of the same philosophies that have defined General Cable over the years
which include an emphasis on safety, Lean manufacturing, strong operating
systems and a "One Company" approach to internal operations and customers.
PDIC has an experienced and disciplined management team led by Mathias
Sandoval, President of Phelps Dodge International Corporation," Kenny
continued.

    "Mr. Sandoval has spent 24 years with PDIC and has developed a reputation
for operating effectively in multiple cultures. His strong and sustaining
global vision has underpinned superior operating results and exceptional asset
utilization. We are delighted that Mr. Sandoval has agreed to continue to lead
the PDIC organization post-acquisition, as well as assume additional operating
responsibility for certain existing General Cable assets. Mathias' skills will
complement the General Cable senior management team who have successfully
expanded the geographic footprint and served markets of the Company over the
last ten years. We also believe there is an opportunity to utilize capacity
within the PDIC organization to support our recent expansion into new markets,
utilizing less capital than previously contemplated," Kenny said.

    PDIC has manufacturing and distribution facilities around the world with
leading market positions in South and Central America, Africa and Southeast
Asia. PDIC has approximately 3,000 employees. In addition to 10 majority-owned
manufacturing and numerous distribution facilities, PDIC also has equity
positions in wire and cable companies in China, Hong Kong, and the
Philippines. For the year ended December 31, 2006, PDIC reported revenues of
approximately $1.2 billion and operating earnings of approximately $77
million. In the first six months of 2007, PDIC's operating performance
continued to strengthen as did its revenue base.

    PDIC has little geographic overlap with General Cable. Sales are
primarily focused on energy products for utility, industrial and construction
applications. Additionally, PDIC has copper and aluminum rod mills on three
continents, a source of competitive advantage in developing regions.

    Just over half of PDIC's revenues are generated from manufacturing assets
located in South and Central America, where leading market positions are held
and where General Cable has a minor presence. PDIC brings over $200 million of
revenues in sub-Saharan Africa, where General Cable participates on a much
smaller scale. PDIC is a leader in Southeast Asia and India with positions
that nicely complement General Cable's current activities in India, China and
Oceania. As well, PDIC has equity investments in two companies serving the
Chinese energy cable market as well as one in the Philippines. PDIC also has
well developed global sales channels for its energy infrastructure products
made in Thailand and South America.

    Based on reported 2006 sales of $4.8 billion, the combined companies
would have approximately 44% of revenues in North America, 27% in Europe and
the Middle East, 15% in South and Central America, and 14% in Africa/Asia
Pacific.

    Transaction Details

    Under the terms of the transaction, which has been unanimously approved
by General Cable's Board of Directors, General Cable will acquire 100% of the
shares held by Freeport and its subsidiaries in the various entities
comprising Freeport's wire and cable business. The purchase price is subject
to adjustment to take into account the net effect of any dividends and other
distributions made from, and capital contributions made to, the entities being
acquired from March 31, 2007. In addition, as part of the transaction, General
Cable will be assigned the rights in the "Phelps Dodge International
Corporation" and "PDIC" brands well known in the wire and cable industry.
Subject to the satisfaction of customary closing conditions and the receipt of
clearances or waivers from competition and regulatory authorities in relevant
jurisdictions, the transaction is expected to close during the fourth quarter
of 2007.

    Merrill Lynch & Co. acted as exclusive financial advisor and provided a
fairness opinion to General Cable in connection with the transaction. Blank
Rome LLP and Norton Rose LLP served as General Cable's external legal counsel.

    Third Quarter Update

    "The markets are behaving approximately as we anticipated with
telecommunications and housing related cable demand remaining soft, offset by
energy infrastructure requirements and the continued benefits of our Lean
manufacturing initiatives. We continue to expect revenues of approximately
$1.1 billion for the third quarter and earnings of $0.85 to $0.90 per share,
consistent with our previous guidance," Kenny concluded.

    Conference Call and Webcast Information

    General Cable plans to host a conference call for investors and analysts
to discuss the transaction on Wednesday, September 12th at 3:00 p.m. For U.S.
participants, to participate in the conference call please dial
1-877-840-8912. For international participants please dial 1-706-679-5525. The
conference ID number is: 16087667. A live listen-only audio of the conference
call will be broadcasted in its entirety to all interested parties. To listen
to the call, go to General Cable's Web site, www.generalcable.com. A replay of
this conference call will be archived for a limited time on the Web site as
well.

    General Cable 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, and communications markets. Visit our Web
site at www.generalcable.com.

    Forward Looking Statements

    Certain statements in this press release, including, without limitation,
statements regarding future financial results and performance, plans and
objectives, capital expenditures and the Company's or management's beliefs,
expectations or opinions, are forward-looking statements. These statements are
made pursuant to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. Actual results may differ materially from those
statements as a result of factors, risks and uncertainties over which the
Company has no control. Such factors include reliance on dividends and other
transfers from subsidiaries to repay indebtedness; ability to service
outstanding indebtedness; the Company's failure to comply with covenants in
existing and future financing arrangements; covenants contained in existing
indebtedness that restrict the Company's business operations; downgrade in the
Company's credit ratings; ability to repurchase outstanding notes; ability to
pay the conversion price on convertible notes; the economic strength and
competitive nature of the geographic markets that the Company serves;
economic, political and other risks of maintaining facilities and selling
products in foreign countries; changes in industry standards and regulatory
requirements; advancing technologies, such as fiber optic and wireless
technologies; volatility in the price of copper and other raw materials, as
well as fuel and energy and the Company's ability to reflect such volatility
in its selling prices; interruption of supplies from the Company's key
suppliers; the failure to negotiate extensions of the Company's labor
agreements on acceptable terms; the Company's ability to increase
manufacturing capacity and achieve productivity improvements; the Company's
dependence upon distributors and retailers for non-exclusive sales of certain
of the Company's products; pricing pressures in the Company's end markets; the
Company's ability to maintain the uncommitted accounts payable or accounts
receivable financing arrangements in its European operations; the impact of
any additional charges in connection with plant closures and the Company's
inventory accounting practices; the impact of certain asbestos litigation,
unexpected judgments or settlements and environmental liabilities; the ability
to successfully integrate the proposed acquisition and other acquisitions,
costs associated with the proposed acquisition and other acquisitions; the
receipt and timing of regulatory approvals for the proposed acquisition; the
ability to finance the acquisition purchase price and expiration of the
commitment letter; the possibility that the acquisition will not close; the
reaction of customers, suppliers and competitors to the proposed acquisition;
general market perception of the proposed acquisition, diversion of management
attention from other business concerns due to the proposed acquisition and
other acquisitions; undisclosed or unanticipated liabilities and risks
resulting from the proposed acquisition; increased indebtedness resulting from
the funding of the proposed acquisition; operations in additional foreign
countries and political instability in such countries; the ability to
successfully identify and finance other acquisitions; the impact of terrorist
attacks or acts of war which may affect the markets in which the Company
operates; the Company's ability to retain key employees; the Company's ability
to service debt requirements and maintain adequate domestic and international
credit facilities and credit lines; the impact on the Company's operating
results of its pension accounting practices; the Company's ability to avoid
limitations on utilization of net losses for income tax purposes; volatility
in the market price of the Company's common stock all of which are more fully
discussed in the Company's Annual Report on Form 10-K filed with the
Securities and Exchange Commission on March 1, 2007, as well as any current
and periodic reports filed with the Commission subsequent to such date. The
Company undertakes no obligation to release publicly the result of any
revisions to these forward-looking statements that may be made to reflect
events or circumstances after the date hereof or to reflect the occurrence of
unanticipated events.




For further information:

For further information: General Cable Corporation Michael P. Dickerson,
859-572-8684 Vice President of Finance and Investor Relations

Organization Profile

GENERAL CABLE CORPORATION

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