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Viag in talks with Alusuisse
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November 17, 1998: 8:52 a.m. ET
German conglomerate in move for Swiss group; would create a $26B company
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LONDON (CNNfn) - German conglomerate Viag is in takeover talks with Swiss industrial group Alusuisse-Lonza in a move that would create a new European industrial giant with a market capitalization of $26 billion.
Alusuisse confirmed talks had been taking place, but said that no firm agreements had yet been reached.
"These discussion have involved varying degrees of cooperation, and have not resulted in any concrete agreement to date," the Swiss company said in a statement.
Viag is an energy and industrial conglomerate which said last week it wants to focus on chemicals, aluminum and packaging. It has a market capitalization of 31.5 billion marks ($18.9 billion).
Alusuisse-Lonza, which has a market value of 10.2 billion Swiss francs ($7.4 billion), has interests in everything from pharmaceuticals to packaging and aluminum to cosmetics and food.
Shares in the two companies moved in opposite directions by mid-session. Viag shares slipped 37 marks, 3 percent, to 1,550 while Alusuisse stock rose 5 percent, or 85 francs to 720.
The news comes one day after reports that Hoechst of Germany and Rhone-Poulenc of France are close to a merger. 
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Viag
Alusuisse-Lonza
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