Cable Design (NYSE:CDT)
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Belden and CDT Shareholders Approve Merger to Form Belden CDT
CDT Shareholders Also Approve Reverse Stock Split
ST. LOUIS, and SCHAUMBURG, Ill., July 15 /PRNewswire-FirstCall/ --
Shareholders of Belden Inc. (NYSE:BWC) and Cable Design Technologies
Corporation (NYSE:CDT), in separate meetings today, approved the merger
transaction in which the two companies will combine. The shareholders of CDT
also approved the one-for-two reverse stock split of CDT shares and other
merger-related proposals. The companies expect that the CDT reverse stock
split and the merger will be made effective at the close of business today.
As previously announced, the combined company will be known as Belden CDT Inc.
and will be headquartered in St. Louis, Missouri. Belden CDT will be one of the
largest U.S.-based manufacturers of high-speed electronic cables and will focus
on products for the specialty electronics and data networking markets,
including connectivity.
As a result of the reverse stock split of CDT and the merger, each share of
Belden common stock outstanding immediately prior to the merger will be
converted into one share of Belden CDT common stock and each two shares of CDT
common stock will be converted into one share of Belden CDT common stock.
Belden and CDT expect that Belden CDT stock will begin trading on the New York
Stock Exchange tomorrow, July 16, under the new ticker symbol BDC (NYSE:BDC).
In fiscal 2003, Belden and CDT generated combined revenue of approximately $1.1
billion, giving effect to the discontinued operations. The market
capitalization of the combined companies approaches $1 billion based on the
closing price of CDT's common stock as of July 14, 2004. Belden CDT expects
operate in 11 countries.
Bryan Cressey, who will be Chairman of Belden CDT, said, "We are extremely
pleased to announce shareholder approval of this historic merger and look
forward to moving ahead as a preeminent producer of electronic cable and
connectivity products. This transaction will allow us to recognize a
significant number of synergies and provide our customers with a broader
product portfolio. We are committed to executing a strategy that will result in
long-term growth and increased shareholder value."
Baker Cunningham, who will be the President and Chief Executive Officer of
Belden CDT, commented, "This merger will represent a transformation of these
two industry leaders and an opportunity to incorporate the best characteristics
from each company's legacy. Belden CDT will have an enviable portfolio of
electronic cable and connectivity products, and our strong balance sheet and
cash flow provide a great deal of flexibility and the opportunity to continue
to grow."
Belden and CDT also said that Belden CDT plans to locate the offices of its
Networking Division at Belden's Fort Mill, South Carolina, facility, formerly
part of Belden's North American Communications business which was recently
discontinued. No other facility-related decisions were announced today.
As Belden previously announced, it plans to disclose on July 29 the results of
its second quarter ended June 30.
Forward-Looking Statements
This release contains, in addition to statements of historical fact, certain
forward-looking statements. These forward-looking statements involve risk and
uncertainty. Actual results could differ from those currently anticipated due
to a number of factors including those mentioned in documents filed with the
SEC by both Belden and CDT. Forward-looking statements are based on
information available to management at the time, and they involve judgments and
estimates. Factors that could cause results to differ from expectations are
discussed in Belden's Annual Report on Form 10-K for the year ended December
31, 2003 filed with the SEC on March 4, 2004, CDT's Annual Report on Form 10-K
for the year ended July 31, 2003 filed with the SEC on October 29, 2003 and
CDT's Registration Statement on Form S-4 filed with the SEC on March 24, 2004.
Belden CDT Inc. assume no responsibility to update any forward-looking
statements as a result of new information or future developments.
CONTACT: Dee Johnson, Director of Investor Relations of Belden Inc.,
+1-314-854-8054
DATASOURCE: Belden Inc.
CONTACT: Dee Johnson, Director of Investor Relations of Belden Inc.,
+1-314-854-8054
Web site: http://www.belden.com/