MONTREAL, Quebec With an eye toward becoming one of the world's largest aluminum and packaging companies, ALCAN has launched a takeover bid for Pechiney of Paris, France. The offer values each Pechiney share at 41 (euros), a 28% premium over the closing price on July 2 and 39% over the one-month average. The offer consists of 60% in cash and 40% in new Alcan common shares.
"This is a win-win offer that maximizes value for shareholders and stakeholders of both companies, recognizes the strengths of both companies and provides the best option for future growth. I am convinced that Alcan's offer represents an exceptional opportunity for both Pechiney and Alcan and that now is the right time to seize it," said Travis Engen, Alcan's president and CEO.
The combined company will benefit from enhanced scale, financial strength and technological resources as well as its increased capability to serve customers worldwide. Reflecting Alcan's significantly increased industrial presence in France, Alcan intends to locate the global headquarters of the combined entity's packaging business in Paris and has identified France as the headquarters for its European primary aluminum business. In addition, Alcan has identified France as the future home for its global centre of excellence for new cell technology development in primary aluminum.
To view Engen's address to Alcan's shareholders at the company's 2003 annual general meeting, go to www.alcan.com.
The directors of Pechiney have rejected Alcan's offer.