PARIS, Nov 12, 2007 (AFP) - Dutch electrical components maker Hagemeyer has agreed to begin exclusive takeover talks with French peer and sector leader Rexel, which has sweetened its offer, the companies said Monday.

Rexel has been joined in its bid for Hagemeyer, the world's third largest electrical components producer, by the number two company in the sector, Sonepar, also of France.

After having been rebuffed by Hagemeyer, Rexel recently raised an all-cash offer to 4.85 euros a share from 4.60 euros, which would value the Dutch firm at 3.1 billion euros (4.5 billion dollars).

A statement from all three groups on Monday said management at Hagemeyer would recommend that the offer be accepted following due diligence financial audits and after other formalities are completed.

Rexel, Sonepar and Hagemeyer sell components such as sockets and meters to industrial giants such as Schneider, Legrand and Siemens.

The deal would allow Rexel to take control of the 10.49 percent stake in Hagemeyer held by Sonepar, which considered making its own bid for the Dutch group before deciding to team up with Rexel.

If the takeover is completed, Rexel would take charge of most of Hagemeyer's operations in Europe while Sonepar would acquire Hagemeyer assets in North America, the Asia-Pacific region and in some parts of Europe.

The transaction would help Rexel consolidate its nunber one status, giving it annual sales of more than 14 billion euros.

Investors welcomed the news. Rexel shares were up 0.85 percent at 14.32 euros near mid-day here while in Amsterdam Hagemeyer had gained 1.07 percent to reach 4.71 euros.