Europe: Pechiney's board rejects Alcan bid

Global Finance, Sep 2003

The board of Paris-based Pechiney unanimously rejected a $3.9 billion takeover bid by Montreal-based Alcan that would create the world's largest aluminum producer in terms of sales.

Alcan, along with Switzerland's Algroup, previously agreed to buy Pechiney in 1999, but the deal was scrapped after European regulators expressed concerns. Alcan and Algroup have since merged.

Pechiney complained that it had not been consulted before Alcan announced plans in July to launch an unsolicited tender offer to acquire the French company for a combination of cash and shares.

Alcan's president and chief executive, Travis Engen, says, "This is a win-win offer that maximizes value for shareholders and stakeholders of both companies."

The transaction would be contingent upon at least 50% of Pechiney's shares being tendered.