MILAN (Reuters) - Prysmian, the world's biggest cable maker, said on Monday it had signed a 50 million euro (£43.8 million) contract with Terna to strengthen Italy's power grid.

The project will be executed over three years, the Milan-based cable maker said in a statement, adding it could be extended beyond its initial lifetime and increased in value.

As part of its cooperation with the Italian power grid company, Prysmian is also building a high voltage direct current connection between France and Italy and an underwater cable between Capri and Sorrento in southern Italy.

(Reporting by Maria Pia Quaglia; editing by Francesca Landini)

Stocks treated in this article : Terna, Prysmian