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Gold/Mining/Energy : Alcan Aluminum (AL-TSE) -- Ignore unavailable to you. Want to Upgrade?

To: Mr. Oil who wrote (27)	8/10/1999 1:07:00 PM
From: MrsNose	Read Replies (1) \| Respond to of 33

Tuesday August 10, 12:40 pm Eastern Time Alcan to dominate merger with Alusuisse, Pechiney LONDON, Aug 10 (Reuters) - Canada's Alcan (NYSE:AL - news)(Toronto:AL.TO - news) will dominate a proposed three-way combination with Switzerland's Alusuisse Lonza Group and France's Pechiney , with Alcan shareholders owning 44 percent of the new group, industry sources told Reuters on Tuesday. A formal announcement of the deal, which will give Pechiney shareholders 29 percent and Alusuisse stockholders 27 percent of the combined aluminium giant, is expected to be made on Wednesday. Alcan's President Jacques Bougie will head the new group, with Pechiney's Chairman Jean Pierre Rodier its chief operating officer, the sources added. Alcan will be the surviving parent company of the group, which will be listed in Toronto, New York, London and Paris. Before the three-way merger goes ahead, Alusuisse will demerge its chemicals arm Lonza, creating a separately listed company with a valuation estimated at more than $4.0 billion, the sources said. This new Zurich-listed company will be run by Alusuisse Chief Executive Sergio Marchionne, who will have a seat on the 12-person board of the combined group. This board will have four representatives from each of the three companies. As part of the agreement, Alcan will pay Pechiney and Alusuisse shareholders special dividends, although the amounts they will receive may not be disclosed immediately. While a three-way memorandum of understanding between the three groups will show their intention to merge, the initial merger agreement will be limited to Alcan and Alusuisse because Pechiney is bound by European labour laws and must consult with its workers council before entering into a deal. Sources close to the deal do not expect any regulatory issues to arise in the Canadian-Swiss element of it. And while they do anticipate closer scrutiny of the combination of the French and Swiss operations, they do not see any major hurdles to the deal being given the green light.