General Cable Corporation Hit with Securities Lawsuit Over Proposed Merger

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General Cable Corporation and its board of directors are facing a securities lawsuit filed by a stockholder who claims the defendants filed a misleading proxy statement in connection with a potential merger between General Cable and a subsidiary of Prysmian S.p.A.

“In particular,” the complaint alleges, “the Proxy contains materially incomplete and misleading information concerning the financial forecasts for the Company that were prepared by the Company and relied upon by the Board in recommending the Company’s shareholders vote in favor of the Proposed Merger.”

The plaintiff argues that the proposed transaction “appears inadequate” in light of the company’s restructuring plan, noting that its efforts, “while costly in the short-term,” would allow stockholders to enjoy future benefits.

Without the aforementioned information, the plaintiff alleges, stockholders will be unable to determine for themselves whether they should support the merger.