PARIS, Oct 25, 2007 (AFP) - Dutch electrical supplies distributor Hagemeyer said Thursday it rejected an unsolicited all-cash 3-billion-euro (4.3-billion-dollar) cash takeover bid from its French peer Rexel.

Rexel unveiled the bid, which if it went through would enable the French company to retain its market leadership, earlier Thursday.

Under the proposed deal, Rexel's domestic rival Sonepar would withdraw its earlier bid for Hagemeyer and instead buy selected Hagemeyer assets from Rexel.

However, Hagemeyer's management and supervisory boards reiterated their strong confidence in their company's strategy and its future.

The boards also said they were convinced the continuing improvement in Hagemeyer's performance could realise value substantially higher than the Rexel offer.

As requested by Rexel, Hagemeyer said it intends to meet with the French company to clarify its intentions.

If Revel's 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.