Pechiney snubs Alcan offer
of a proposal for an increase in its offer for all of Pechiney's
securities have ended. But Alcan says it is still confident that a
deal will be eventually agreed.
Alcan has confirmed that its discussions with Pechiney on the terms of a proposal for an increase in its offer for all of Pechiney's securities have ended. But Alcan says it is still confident that a deal will be eventually agreed.
Alcan's revised proposal was conditional upon it being recommended by Pechiney's Board for acceptance by its shareholders. Alcan's improved cash and share proposal would have provided for a maximum of €47 - 48 per Pechiney share, which would have amounted to €4 billion - a 9 per cent increase on the original offer. In entering discussions with Pechiney and making this proposal, Alcan sought to create an opportunity to facilitate and accelerate the integration of the two companies.
Pechiney advised Alcan on August 31, 2003 that its Board did not accept Alcan's revised proposal. Consequently, it lapsed and discussions have ended.
The French group said the increased bid still "continues to fall short of Pechiney's true strategic value, especially in light of the positive recent market trends relating to the euro-dollar exchange rate and the aluminium price", adding that they did consider that it was a step in the right direction.
Alcan says it remains confident that its original July 7, 2003 offer will succeed. Based on Alcan's share price as of August 29, 2003, Alcan's cash and share offer is worth approximately €44.50 per Pechiney share.
Competition regulators from the European Commission are due to announce on September 29 their decision on whether to approve the bid or whether to subject the deal to a full four-month review.
Pechiney is an international group listed on the Paris and New York stock exchanges. Its three core businesses are primary aluminium, aluminium conversion and packaging. Pechiney achieved sales of €11.9 billion in 2002. It employs 34,000 employees.
Pechiney is an international group listed on the Paris and New York stock exchanges. Its three core businesses are primary aluminium, aluminium conversion and packaging. Pechiney achieved sales of €11.9 billion in 2002. It employs 34,000 employees.
Alcan is a multinational company and a global leader in aluminum, packaging, and recycling with 2002 revenues of US$12.5 billion. The company employs 54,000 people and has operating facilities in 42 countries.
