Constellium CEO Says Company Still Open to ‘Serious’ Suitors
(Bloomberg) -- Constellium NV, which was said to have drawn takeover interest last year, hasn’t closed the door to prospective suitors, Chief Executive Officer Jean-Marc Germain said.
“We’re for sale every day as a listed company, so we’ll study any offer that is serious,” Germain said in a telephone interview Monday. “If somebody comes in, it’s got to be something that makes a real difference for our shareholders vis-a-vis executing our plan.”
Last year, the Dutch maker of aluminum products used in automobiles, aerospace and packaging which runs plants in the U.S. was said to be weighing options after drawing takeover interest. At the time, Credit Suisse Group AG analysts said the company could be worth as much as $18 a share in a takeover. Shares climbed 3.3 percent to $11.875 at 1:32 p.m. in New York.
Rising demand for aluminum used in cars and other products is helping drive interest in companies like Constellium. In July, Novelis Inc. agreed to acquire Aleris Corp. for $2.6 billion, including debt. Last month, Morgan Stanley analysts said Arconic Inc. is a “suitable candidate” for a leveraged buyout.
Constellium has rallied 6.5 percent this year in New York. Earnings beat even the highest analyst estimate, signaling the company’s resilience amid a global trade war that threatens to weaken demand for industrial materials. The company also benefited as prices of the metal slumped, boosting margins.
“We continue to see good market activity in all three of our major segments: Automotive is developing very nicely for us, we’re seeing aerospace as a very solid market, and packaging as well,” Germain said. “We look at 2018 as another good year and we’re on the way to continuing our operations.”
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