Delete parent where child is (x), cloning tags to siblings

I have a big xml feed of items which i would like to edit so it would fit my webstore importer needs.

The structure looks like this:

<company>

 <pricelist>
  <category></category>
  <subc></subc>

  <item>
   <price></price>
   <image></image>
  </item>

  <item>
   <price></price>
   <image></image>
  </item>

  ....

 </pricelist>

 <pricelist>
  <category></category>
  <subc></subc>

  <item>
   <price></price>
   <image></image>
  </item>

  ....

  <item>
   <price></price>
   <image></image>
  </item>

 </pricelist>

 ....

</company>

What i would like to achieve here are two things:

I. Remove certain parent <pricelist> where it's child <category> is x (something).

II. Clone <category> and <subc> tags to all the sibling <item>s.

<item>
 <category></category>
 <subc></subc>
 <price></price>
 <image></image>
</item>