Berg Agrees to Buyout by French Rival

Berg Electronics Corp., which makes connector plugs used in personal computers and telecommunication products, agreed to be acquired by a unit of French connector company Framatome in a deal valued at about $1.85 billion, or $35 a share. The news sent Berg’s stock soaring more than 50% to close at $32, up $10.44, on the New York Stock Exchange. Under the agreement, Framatome, the world’s third-largest maker of connectors, also will assume about $400 million in debt. St. Louis-based Berg, which had sales of $785 million in 1997 and employs 7,800 people, said its board unanimously approved the deal. Although the acquisition price significantly tops Wednesday’s closing price of $21.50, Berg’s stock has traded near its 52-week low recently, hit by the effects of Asia. Berg recently reported a jump in second-quarter earnings but said sales fell and noted the Asia-Pacific region represented about 18% of its consolidated sales, down from 22% a year earlier.