Persistent speculation that Rexam is set to make a £3BN bid for Saint-Gobain's bottle-making business is unfounded say analysts. Rexam's CE Lars Emilson said that the packaging giant would not shy away from growing its glass business if it became available. The acquisition would make Rexam the world's second largest bottle maker behind Owens Illinois. However, analysts are not convinced that Rexam will make a bid. They point out that glass is not a strategic growth area for Rexam, & the acquisition of such a large business would redefine the company. In addition, Rexam has said it wants to expand in fast growing areas, & one analyst noted that this would rule out slow growing glass. Although Rexam has reserves for acquisitions, the deal would involve raising significant capital. Rexam recently spent £150M on a takeover of Precise Technology, the US packaging group. Analysts and investors welcomed Rexam's move to expand into the global plastics packaging market and the company's share price moved to an all time high.
