Alcan (AL-T) has officially opened its 4-billion-euro takeover bid for French rival Pechiney after recently securing clearance form regulators in that country.
The offer is still not open in the United States, but the Montreal-based aluminum giant says it should shortly open following a review of Pechiney’s annual disclosure documentation by the Securities and Exchange Commission.
After several months of sometimes heated wrangling, Pechiney’s board finally agreed to a twice-revised offer from Alcan. In its final iteration, the offer includes 24.6 euros in cash plus 22.90 euros worth of Alcan shares for each Pechiney share or 10 Pechiney bonus allocation rights tendered. Alcan retains the option of covering the share portion of the deal with cash. The cash-and-share offer includes a bonus of one euro per share, provided 95% of the French company’s shares are tendered.
Pechiney has until Thursday to publish a formal response to the bid. Thereafter, French market regulator, the Conseil des Marches Financiers will fix a closing date. Alcan has until five days before the deal’s closing date to announce what portion, if any, of the share consideration it plans to cover with cash, and the average share price used for such a conversion.
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