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Amcor may buy part of Alcan Packaging

Amcor likely interested in flexibles and tobacco-packaging businesses

By Mark Spaulding, Chief Editor Converting magazine -- Packaging Digest, 2/10/2009 1:24:00 PM

Victoria, Australia-based flexible-packaging converter Amcor Ltd. (www.amcor.com) said that it is in discussions "regarding the potential acquisition of part, but not all, of the Alcan Packaging business," owned by the Rio Tinto group (www.riotinto.com).

In answering questions about why its share price fell about 15 percent this week, Julie McPherson, Amcor group general counsel, responded that Amcor is not "currently considering an equity raising except in the circumstances" that it may make the Alcan Packaging purchase.

As part of Amcor's continual process of reviewing growth opportunities with the aim of improving shareholder value, McPherson said, Amcor is investigating the Alcan Packaging acquisition. "Those discussions are confidential and incomplete in nature, and there can be no assurance that any binding proposal or transaction will result. As part of Amcor's consideration of this potential transaction, it is considering all its funding options."

Amcor is likely interested specifically in Alcan Packaging's flexibles and tobacco-packaging businesses that would complement or enhance its existing operations.

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