Anglo could be Pechiney's white knight analyst
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Chief Reporter
SPECULATION is mounting that Anglo American may be tempted to intercede in Alcan's $3,4bn hostile takeover bid for Pechiney, which would provide it with an entry into the aluminium business and expand its European packaging interests.
Much depends on the attitude of Pechiney management, who appear to favour attempting to remain independent. But market sources suggest Anglo is looking at the possibility closely.
In a note to clients, CIBC mining analyst Jack Jones says Anglo suggested last year that the aluminium industry was attractive, and more recently it had been talking of value-added products and capturing a greater portion of the value chain.
Jones notes that Anglo has experience of integrated upstream/downstream operations in forest products and in European acquisitions.
"Anglo American has been an active acquirer in recent years and we see it as a credible counterbidder for Pechiney."
Counter arguments include Anglo's reluctance to become involved in bidding wars and its lack of synergies that would allow it to top Alcan's à 41 a share stock-and-cash bid. But the fact that Pechiney's share price is trading à 2,50 above the offer price has served to enhance rumours that a white knight is waiting in the wings.
Brazilian steel company CVRD and the Norwegian industrial conglomerate Norsk Hydro have also been mentioned as possible bidders.
Spokeswoman Anne Dunn said Anglo, which is in a closed period, would not comment on market speculation.
Jul 15 2003 07:31:17:000AM Tim Cohen Business Day 1st Edition
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