PARIS, Oct 25, 2007 (AFP) - Electrical supplies distributor Rexel on Thursday unveiled a 3-billion-euro (4.3-billion-dollar) cash bid for Dutch rival Hagemeyer, which will enable the French company to retain its market leadership.

Rexel's domestic rival Sonepar will withdraw its earlier bid for Hagemeyer and instead buy selected Hagemeyer assets from Rexel, should the takeover succeed.

Rexel said it has informed Hagemeyer's management of the bid and has invited the board to discuss the offer.

Hagemeyer confirmed that it has received the takeover bid and said that it will 'review further steps.'

If the takeover succeeds, Sonepar will buy the American, Asian-Pacific and the Austrian, Swiss and Swedish units of Hagemeyer.

'If they hadn't bought Hagemeyer, they would have ended up as number two, because Sonepar-Hagemeyer would have been the number one in the industry. Rexel's future would have been more difficult,' said Yann Azuelos from Meeschaert Asset Management.

'With the acquisition, they retain their leadership position. Added to that, there's the synergies, strong geographical complementarity. Admittedly the price is high, but Hagemeyer is an attractive company,' he said.