Alcan’s $6.4bn hostile takeover of French rival Pechiney was a stand-out deal in all respects. It was the first successful unsolicited offer launched by a non-European bidder in France; it was executed within an accelerated timetable; and it involved an unprecedented structure in French M&A. Not least, the deal created the worldwide leader in aluminium and packaging.
Market reaction throughout was very positive, with Alcan’s share price up 24% between launch and the announcement of agreement.
Morgan Stanley, acting alone, provided Alcan with an underwritten $5bn commitment to permit the hostile bid. “It was a deal with compelling strategic rationale and was applauded by the markets. Alcan’s own stock had a fantastic run – and it was carried out in full co-operation with, and the endorsement of, the French, European and US regulators. Last, but not least, it was impeccably executed: unsolicited and unprecedented (in France), yet wrapped up in two months and a week,” said Michael Zaoui, managing director and chairman of European M&A at Morgan Stanley.
