Show me your mettle

17 July 2003

Several firms are already reportedly interested in the French aluminium group s packaging unit. For this ploy to work, though, Pechiney would have to extract a really good premium for the business.

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French aluminium firm Pechiney may sell its packaging unit to try and thwart a hostile bid from Canadian rival Alcan and has already received offers from several firms for the business, according to reports.

The offers have come from packaging businesses and privateequity funds, according to Dow Jones, citing unnamed sources. The packaging business accounted for 20% of the company's E12bn of revenues last year. Operating profits accounted for some 32% of Pechiney's ebit.

Pechiney, which has vowed to fight Alcan's bid, has called its E41 per share offer ridiculously cheap, and has said that any other option would be better for the French group. France's stock market regulator has cleared the bid – which means Alcan can file the offer with the EU competition authorities. The French Finance Ministry is yet to give it the goahead.

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