|
Viag-Algroup deal collapses
|
 |
March 29, 1999: 11:27 a.m. ET
$24B merger founders on inability to agree on valuations
|
LONDON (CNNfn) - The troubled merger between German conglomerate Viag and Swiss metals company Algroup finally unraveled Monday.
Rumors had been growing that the $24 billion deal, announced in November, would fall apart, especially since Algroup executives said over the weekend that they wouldn't consider renegotiating the terms of the merger.
Under the original terms of the merge, Algroup shareholders would own 35 percent of the new company and Viag investors 65 percent. Viag shareholders apparently had become increasingly frustrated at the agreement.
Viag officials said late Monday they didn't expect the deal to go ahead, citing differences in valuations. An official statement is expected Tuesday.
News of the deal's collapse came after the markets in Europe closed, but both stocks rose earlier Monday on hopes of a parting of the ways.
Viag (FVIA) stock bounced more than 6 percent to 511 euros in Frankfurt Monday. In Zurich, Algroup shares gained 2 percent to 1,660 euros.
Algroup, formerly known as Alusuisse, ousted its chairman over the weekend, and Martin Ebner, Switzerland's best-known corporate investor and Algroup's largest shareholder, took the helm. 
|
|
|
|
|
|
Viag
Algroup
|
Note: Pages will open in a new browser window
External sites are not endorsed by CNNmoney
|
|
|
|
 |
|
