<PAGE> 1
EXHIBIT (C)(3)
CONFIDENTIAL
PROJECT PAC
May 26, 2000
[SALOMON SMITH BARNEY LOGO]
<PAGE> 2
PROJECT PAC / MAY 26, 2000
EXECUTIVE SUMMARY
<TABLE>
<S> <C>
- A purchase price above $20 per share does not generate an adequate THERE HAVE BEEN
internal rate of return for the equity investor assuming the maximum level SEVERAL FACTORS THAT
of debt financing HAVE LED TO THE $20
PER SHARE OFFER.
- $20 share price represents a significant premium to the pre-announcement
price
- 50.9% premium over the average price 30 days prior to announcement
- 43.1% premium over the average price 60 days prior to announcement
- Since the announcement date, an index of rigid packaging stocks has
declined 11.9% and one can assume from this trend, that U.S. Can's stock
price would be lower than its pre-announcement price of $14.88
- U.S. Can did trade as low as $12.00 on March 7, 2000
- Transaction multiples at the proposed purchase price are consistent with
recent precedent transactions
- Rexam is acquiring American National Can for approximately 5.7x LTM
EBITDA
- $20 share price is equivalent to 6.1x LTM EBITDA
- Bank and high yield market conditions have worsened substantially since
March resulting in increased financing costs
- Several factors have contributed to lower projected EBITDA for the Company
- Rigid packaging sector is suffering from soft demand and higher raw
material prices, causing the first half of 2000 to be weak
- The Company's projected LTM EBITDA at June 30, 2000, is $106.4 million,
7.2% below the LTM EBITDA on which the proposal was based
</TABLE>
1 [SALOMON SMITH BARNEY LOGO]
<PAGE> 3
PROJECT PAC / MAY 26, 2000
TRANSACTION ASSUMPTIONS
<TABLE>
<S> <C>
FINANCING STRUCTURE THERE ARE SEVERAL
FUNDAMENTAL
- A maximum of 4.75x total debt to projected LTM EBITDA of $106.4 million at ASSUMPTIONS USED TO
June 30, 2000 DRIVE OUR MODELS.
- Assumes 13.0% coupon on high yield debt with no warrants
- Equity investors generally require a minimum 25% return on investment with
a target of 30%
EXISTING HIGH YIELD BONDS
- Bond repayment premium of $19.2 million
- Assumes $5 million of accrued interest at closing
PROJECTIONS
- Pro forma for acquisition of May Verpackungen and sale of Wheeling/Warren
</TABLE>
<TABLE>
<CAPTION>
(Dollars in Millions)
======================================================================================
1999 LTM 2Q00E 2000E 2001P 2002P 2003P 2004P
--------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Revenue $870.1 $845.7 $873.6 $889.2 $905.6 $919.8 $934.3
Revenue Growth -- -- 1.5% 1.8% 1.8% 1.6% 1.6%
EBITDA $114.6 $108.8 $122.4 $129.7 $136.5 $140.5 $142.7
EBITDA Margin 13.2% 12.9% 14.0% 14.6% 15.1% 15.3% 15.3%
Adjusted EBITDA (a) $111.2 $106.4 $122.4 $129.7 $136.5 $140.5 $142.7
======================================================================================
</TABLE>
(a) Adjusted for the sale of Wheeling/Warren that contributed $3.4 million in
1999 and $2.4 million through 2Q00.
2 [SALOMON SMITH BARNEY LOGO]
<PAGE> 4
PROJECT PAC / MAY 26, 2000
IMPACT OF SHARE PRICE ON EQUITY RETURNS
<TABLE>
<CAPTION>
$20/SHARE $21/SHARE $22/SHARE
-----------------------------------------------------------------------------
<S> <C> <C> <C> <C>
USES: A LEVERAGED
RECAPITALIZATION OF
Purchase Existing Equity $277.8 $291.7 $305.6 U.S. CAN ONLY PROVIDES
ADEQUATE RETURNS TO
Refinance Net Debt (a) 330.6 330.6 330.6 EQUITY INVESTORS AT A
PRICE OF $20 PER SHARE.
Assumed Existing Debt 34.4 34.4 34.4
Transaction and Financing Costs 39.7 39.7 39.7
----------------------------------------
Total Uses $682.5 $696.4 $710.3
SOURCES:
Max Debt (b) $505.4 $505.4 $505.4
Available Cash 10.0 10.0 10.0
REQUIRED EQUITY 167.1 181.0 194.9
----------------------------------------
Total Sources $682.5 $696.4 $710.3
RETURNS ON EQUITY 24.6% 22.7% 21.0%
-----------------------------------------------------------------------------
</TABLE>
--------------------------------
(a) Includes $5.0 million of accrued interest on current high yield bonds.
(b) Maximum debt calculated at 4.75x LTM EBITDA of $106.4 million.
3 [SALOMON SMITH BARNEY LOGO]
<PAGE> 5
PROJECT PAC / MAY 26, 2000
CURRENT BANK FINANCING MARKET CONDITIONS
<TABLE>
<S> <C>
PRICING CONTINUES TO INCREASE FOR "B+" ISSUERS DESPITE LOWER LOAN VOLUME LIBOR HAS BEEN
INCREASING STEADILY
- LIBOR rates have increased 71 bps since March 2000 SINCE MARCH,
SIGNIFICANTLY
- Pro rata and institutional spreads for "B+" issuers have increased 18 bps IMPACTING THE BANK
and 24 bps, respectively since March 2000 FINANCING MARKET.
- Average pro rata pricing is currently at L + 306 bps
- Average institutional spreads are currently at L + 369 bps
- The leveraged loan pipeline has significantly decreased
- As of May 18, 2000, leverage loan pipeline was approximately $20
billion, a decrease of $7.6 billion since March 16th
- Volume of HLT Loans has decreased significantly over the past several
months
- Total HLT loan volume for the three-months ended May 18, 2000 was $26.4
billion versus $31.7 billion completed over the three-month period
ended March 30, 2000
RECENT BANK TRANSACTIONS HAVE REPRICED IN CONJUNCTION WITH BOND PRICING
- Margins on Jostens Pro Rata and Term Loan B facilities were increased by
25 bps
- The institutional tranche of Winstar's $1.15 billion Bank Facility was
price flexed upward twice as a result of pricing on its $2.0 billion of
bonds increasing to L + 450 bps
- Westpoint Stevens withdrew its LBO recapitalization plans as a result of
increased pricing on its financing including $1.1 billion of bank
facilities
</TABLE>
4 [SALOMON SMITH BARNEY LOGO]
<PAGE> 6
PROJECT PAC / MAY 26, 2000
HIGH YIELD MARKET OVERVIEW
<TABLE>
<S> <C>
CONTINUED DETERIORATION IN THE HIGH YIELD MARKET CONDITIONS HAVE RISING INTEREST RATES,
SIGNIFICANTLY INCREASED EXCUTION RISK AND RESULTED IN HIGHER COST OF HIGH DEFAULT RATES AND
FINANCING FOR THIS TRANSACTION EQUITY MARKET VOLATILITY
HAVE SUBSTANTIALLY
- Since March 22, eight deals have been postponed and only seventeen U.S. DISRUPTED THE HIGH YIELD
dollar deals have been priced MARKET.
- Many of the deals are being priced at the high-end of the indicative
price range and/or reduced in size
- The domestic high yield market continues to suffer from significant mutual
fund outflows which is limiting liquidity
- Year-to-date outflows have been approximately $6.9 billion including an
outflow of $224 million for the week ended May 19th
- Secondary market trading is limited
- New issue market is approximately 25% of last year's volume
- The rising cost of high yield financing is the result of rising interest
rates, limited liquidity and higher default rates
- 10-year treasury rates have increased approximately 28 basis points
since March 22
- Spreads on double-B and single-B rated securities have continued to
widen
- Four of the last seven domestic deals have required warrants
- Huntsman Packaging, the most recent industrial deal in the market, was
forced to price its senior subordinated notes at 13.5% with 3% warrants
</TABLE>
5 [SALOMON SMITH BARNEY LOGO]
<PAGE> 7
PROJECT PAC / MAY 26, 2000
WESTPOINT STEVENS INC. STOCK PRICE PERFORMANCE
DAILY DATA: DEC/26/1999 THROUGH MAY/25/2000
Date Price Volume (in thousands)
19991227 $16.63 199.6
19991228 $16.81 385.4
19991229 $17.25 184.0
19991230 $17.00 126.7
19991231 $17.50 370.3
20000103 $17.50 245.3
20000104 $17.00 594.9
20000105 $17.25 518.7
20000106 $17.25 246.1
20000107 $17.31 122.2
20000110 $17.69 107.6
20000111 $17.25 212.5
20000112 $17.44 212.1
20000113 $17.25 567.6
20000114 $17.19 855.2
20000118 $16.38 810.4
20000119 $16.31 197.5
20000120 $16.25 197.9
20000121 $16.00 180.2
20000124 $16.06 196.1
20000125 $16.25 152.6
20000126 $16.31 96.2
20000127 $16.31 308.0
20000128 $16.44 110.2
20000131 $16.44 185.9
20000201 $16.88 331.1
20000202 $17.44 122.1
20000203 $17.94 171.8
20000204 $17.38 215.7
20000207 $17.31 166.3
20000208 $17.06 242.4
20000209 $17.06 131.2
20000210 $14.81 437.4
20000211 $14.00 255.4
20000214 $16.81 1,832.4
20000215 $17.13 413.0
20000216 $17.00 164.5
20000217 $16.44 199.4
20000218 $16.50 250.1
20000222 $17.38 246.4
20000223 $17.75 319.1
20000224 $17.50 485.1
20000225 $16.63 252.9
20000228 $16.81 71.9
20000229 $16.75 348.9
20000301 $16.94 105.7
20000302 $16.88 237.6
20000303 $16.94 38.9
20000306 $16.25 148.1
20000307 $16.31 159.4
20000308 $16.50 137.6
20000309 $16.31 351.5
20000310 $16.25 110.2
20000313 $16.44 175.0
20000314 $16.13 75.2
20000315 $16.63 148.6
20000316 $16.56 122.6
20000317 $16.44 123.2
20000320 $16.38 37.0
20000321 $16.50 70.0
20000322 $16.88 61.1
20000323 $16.75 62.3
20000324 $17.13 98.2
20000327 $17.75 397.0
20000328 $17.38 390.2
20000329 $17.63 140.8
20000330 $18.50 344.2
20000331 $19.00 645.2
20000403 $18.75 128.3
20000404 $18.19 180.2
20000405 $18.13 131.6
20000406 $18.19 96.3
20000407 $18.06 85.9
20000410 $18.00 118.9
20000411 $17.56 108.1
20000412 $17.13 95.3
20000413 $17.06 221.2
20000414 $16.31 89.7
20000417 $16.88 114.1
20000418 $17.06 164.6
20000419 $17.06 161.9
20000420 $17.38 266.9
20000424 $17.25 120.5
20000425 $17.31 81.1
20000426 $18.25 423.4
20000427 $18.38 198.9
20000428 $18.75 342.0
20000501 $19.06 258.6
20000502 $19.06 223.8
20000503 $18.94 143.0
20000504 $19.19 128.5
20000505 $19.50 91.2
20000508 $19.44 272.2
20000509 $19.19 126.4
20000510 $18.69 171.9
20000511 $18.56 215.3
20000512 $18.63 72.5
20000515 $19.13 159.9
20000516 $19.25 163.4
20000517 $18.69 103.4
20000518 $18.06 104.9
20000519 $18.00 76.9
20000522 $13.25 4,451.1
20000523 $12.25 2,251.2
20000524 $11.06 1,299.8
20000525 $11.06 546.1
(a) 02/11/00: Stock trading at $14.00 per share; offer received from
management at $21.00 per share.
(b) 05/19/00: Offer cancelled.
(c) 05/25/00: Stock priced closed at $11.06 per share.
6
<PAGE> 8
PROJECT PAC / MAY 26, 2000
STOCK PRICE PERFORMANCE OF COMPARABLE COMPANIES
RELATIVE PRICE CHANGE TO 5/24/00
<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------------------------
Current Price Average Price Average Price Average Price
(5/24/00) Prior 1 Month % Change Prior 2 Month % Change Prior 3 Month % Change
-------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Ball Corp. $30.06 $31.96 (6.3%) $31.85 (5.6%) $34.37 (14.3%)
BWAY Corp. 7.19 7.48 (4.1) 7.72 (6.9) 6.85 4.7
Crown, Cork & Seal 17.00 16.79 1.2 16.01 6.2 18.46 (8.6)
Owens-Illinois, Inc. 11.81 13.27 (12.3) 15.21 (22.4) 18.20 (54.1)
Silgan Holdings 9.88 12.26 (24.2) 12.56 (21.4) 13.31 (34.8)
-------------------------------------------------------------------------------------------------------------------------
</TABLE>
DAILY DATA: MAY/24/1999 THROUGH MAY/24/2000
Date BY BLL SLGN OI CCK
19990524 $14.06 $51.13 $19.75 $31.00 $32.38
19990525 $14.75 $51.13 $19.75 $30.31 $33.13
19990526 $14.25 $51.50 $19.50 $29.69 $32.56
19990527 $13.94 $48.88 $19.81 $29.81 $31.13
19990528 $14.25 $48.88 $20.13 $30.50 $31.38
19990601 $14.31 $47.94 $19.44 $30.88 $31.94
19990602 $14.50 $48.00 $19.88 $30.75 $31.38
19990603 $14.50 $47.19 $19.81 $31.00 $31.88
19990604 $14.50 $49.25 $20.50 $31.75 $32.44
19990607 $14.06 $50.06 $20.38 $32.00 $32.50
19990608 $14.00 $49.81 $20.13 $31.63 $32.63
19990609 $13.88 $47.88 $20.25 $31.13 $32.88
19990610 $14.00 $48.44 $20.00 $31.50 $32.69
19990611 $14.06 $47.81 $19.25 $31.00 $32.94
19990614 $14.06 $48.13 $20.25 $31.63 $33.56
19990615 $13.94 $47.75 $24.50 $32.44 $33.81
19990616 $14.50 $45.38 $22.75 $32.00 $33.69
19990617 $14.25 $44.13 $22.63 $32.50 $33.44
19990618 $13.88 $44.56 $22.25 $33.19 $33.31
19990621 $14.06 $47.94 $23.00 $33.19 $33.13
19990622 $13.81 $46.50 $22.50 $32.44 $32.44
19990623 $12.88 $45.88 $22.50 $32.06 $28.94
19990624 $12.94 $45.44 $22.38 $31.13 $28.69
19990625 $12.19 $45.88 $21.00 $32.50 $28.56
19990628 $12.50 $45.69 $21.50 $32.25 $28.63
19990629 $13.38 $46.00 $20.75 $32.63 $29.56
19990630 $14.25 $42.25 $19.88 $32.69 $28.50
19990701 $13.75 $46.63 $20.25 $32.75 $29.06
19990702 $13.13 $46.19 $20.00 $31.56 $29.50
19990706 $13.38 $46.06 $19.75 $31.38 $28.56
19990707 $13.00 $46.25 $20.00 $31.38 $29.00
19990708 $12.63 $47.38 $19.56 $30.88 $28.13
19990709 $12.00 $47.13 $19.75 $31.69 $28.19
19990712 $11.63 $46.56 $19.63 $32.13 $28.56
19990713 $11.44 $46.44 $19.63 $31.25 $28.31
19990714 $12.19 $45.94 $19.63 $30.25 $28.19
19990715 $12.63 $44.69 $19.63 $30.06 $27.88
19990716 $12.81 $44.88 $19.38 $30.00 $27.94
19990719 $12.81 $44.75 $19.63 $29.69 $28.25
19990720 $12.75 $44.44 $19.50 $26.38 $28.00
19990721 $13.00 $45.25 $19.63 $26.44 $28.06
19990722 $12.38 $45.06 $21.00 $26.00 $29.38
19990723 $12.75 $46.00 $21.00 $25.50 $29.81
19990726 $13.06 $46.00 $22.00 $25.06 $29.56
19990727 $12.81 $47.94 $22.00 $25.88 $30.38
19990728 $13.19 $47.31 $22.13 $26.13 $29.94
19990729 $12.50 $47.13 $21.75 $25.13 $29.00
19990730 $11.88 $48.44 $21.69 $24.94 $29.31
19990802 $12.00 $47.88 $23.00 $25.31 $29.75
19990803 $12.19 $47.94 $23.00 $25.44 $29.69
19990804 $11.75 $48.19 $23.50 $25.50 $29.88
19990805 $11.50 $47.50 $23.44 $24.94 $29.00
19990806 $11.50 $47.63 $22.50 $25.00 $28.38
19990809 $10.75 $46.94 $22.50 $24.38 $29.06
19990810 $10.69 $48.19 $24.13 $24.13 $28.44
19990811 $10.63 $51.69 $23.50 $24.38 $28.50
19990812 $10.19 $50.13 $23.50 $23.94 $28.63
19990813 $10.81 $49.81 $23.25 $23.69 $29.06
19990816 $10.88 $50.75 $22.88 $24.38 $28.88
19990817 $11.00 $50.88 $22.38 $24.69 $28.81
19990818 $11.25 $50.00 $22.25 $24.75 $28.69
19990819 $10.63 $49.75 $22.00 $24.88 $28.88
19990820 $10.63 $50.06 $21.50 $25.19 $28.75
19990823 $9.88 $48.88 $20.94 $25.38 $28.75
19990824 $9.69 $45.13 $20.94 $25.31 $28.25
19990825 $9.63 $44.88 $20.88 $25.00 $28.13
19990826 $9.31 $44.94 $20.88 $24.88 $27.25
19990827 $9.25 $45.38 $20.13 $25.06 $27.75
19990830 $8.94 $44.63 $19.81 $24.44 $27.13
19990831 $8.63 $44.94 $18.00 $24.75 $26.56
19990901 $8.75 $45.38 $19.19 $24.38 $27.50
19990902 $9.00 $44.75 $19.25 $24.00 $27.31
19990903 $9.31 $45.38 $20.00 $24.06 $27.31
19990907 $9.00 $45.56 $20.25 $23.75 $27.06
19990908 $9.31 $46.25 $19.88 $23.81 $27.00
19990909 $9.44 $46.38 $20.00 $23.81 $26.81
19990910 $9.88 $46.56 $20.31 $23.69 $26.44
19990913 $10.38 $46.50 $19.50 $23.63 $26.19
19990914 $10.25 $45.94 $19.50 $23.50 $26.06
19990915 $10.00 $45.75 $19.63 $23.69 $25.56
19990916 $10.00 $44.81 $19.41 $24.00 $25.38
19990917 $10.00 $45.31 $19.50 $23.81 $25.00
19990920 $10.25 $43.94 $19.50 $22.63 $24.63
19990921 $10.38 $43.88 $19.63 $20.50 $24.13
19990922 $10.00 $44.25 $19.75 $20.25 $23.94
19990923 $10.25 $44.44 $19.63 $20.25 $23.63
19990924 $10.19 $43.06 $19.50 $19.75 $23.75
19990927 $10.00 $44.19 $19.94 $19.63 $24.44
19990928 $9.00 $43.81 $19.19 $19.50 $23.63
19990929 $9.38 $43.75 $19.00 $19.69 $23.75
19990930 $9.94 $44.06 $20.00 $19.81 $24.25
19991001 $9.38 $43.31 $18.94 $20.13 $24.00
19991004 $9.13 $42.94 $18.56 $20.00 $24.25
19991005 $9.44 $41.94 $19.88 $20.50 $24.00
19991006 $8.63 $41.75 $19.88 $20.13 $24.00
19991007 $8.63 $41.94 $18.25 $19.88 $23.81
19991008 $8.63 $43.38 $18.13 $20.00 $23.94
19991011 $8.69 $42.00 $18.88 $19.94 $23.56
19991012 $8.13 $41.13 $18.13 $20.00 $23.25
19991013 $6.75 $40.50 $17.63 $19.75 $23.31
19991014 $6.88 $39.25 $16.94 $19.75 $22.94
19991015 $6.63 $38.50 $18.00 $19.75 $22.31
19991018 $5.88 $39.63 $16.75 $20.00 $22.50
19991019 $7.31 $39.63 $16.25 $20.19 $23.06
19991020 $7.00 $38.75 $16.38 $20.06 $22.00
19991021 $7.00 $38.63 $16.75 $20.00 $22.69
19991022 $7.00 $39.81 $17.50 $21.31 $23.00
19991025 $6.63 $40.31 $16.31 $21.31 $24.00
19991026 $6.56 $39.75 $16.50 $21.50 $23.88
19991027 $6.38 $40.25 $16.50 $22.13 $23.81
19991028 $6.00 $40.13 $15.44 $23.50 $24.00
19991029 $6.50 $40.31 $15.38 $23.94 $23.94
19991101 $6.00 $40.06 $15.06 $24.38 $23.25
19991102 $6.25 $39.75 $14.94 $24.56 $23.31
19991103 $6.81 $40.13 $15.50 $24.81 $23.19
19991104 $6.56 $39.44 $15.50 $24.56 $22.81
19991105 $7.13 $39.56 $15.94 $24.56 $22.63
19991108 $7.44 $39.81 $14.75 $24.56 $23.06
19991109 $7.06 $38.38 $14.75 $24.38 $22.69
19991110 $7.44 $39.75 $14.81 $24.13 $22.00
19991111 $6.63 $40.44 $14.88 $24.19 $22.38
19991112 $6.50 $39.13 $14.75 $23.69 $22.25
19991115 $7.00 $39.50 $15.50 $23.81 $21.88
19991116 $6.94 $39.44 $15.63 $24.06 $21.81
19991117 $6.50 $39.50 $15.00 $24.25 $21.88
19991118 $7.00 $39.31 $16.75 $24.31 $22.06
19991119 $7.00 $38.88 $16.63 $24.06 $22.38
19991122 $6.50 $38.13 $16.19 $24.00 $21.50
19991123 $5.63 $39.00 $16.13 $24.25 $22.06
19991124 $5.69 $38.19 $16.00 $24.19 $21.50
19991126 $5.50 $37.75 $15.75 $24.00 $21.00
19991129 $5.69 $37.44 $15.75 $23.56 $20.81
19991130 $5.75 $37.19 $15.19 $23.94 $20.38
19991201 $5.63 $37.75 $14.94 $23.94 $20.06
19991202 $6.00 $38.50 $14.75 $24.06 $20.69
19991203 $5.69 $39.19 $15.25 $24.44 $21.13
19991206 $5.63 $39.44 $14.25 $24.38 $21.38
19991207 $6.75 $39.38 $15.19 $23.69 $22.50
19991208 $6.75 $38.56 $14.50 $24.00 $22.13
19991209 $6.56 $37.44 $14.63 $24.94 $21.69
19991210 $6.88 $38.13 $13.50 $25.38 $21.50
19991213 $6.00 $36.38 $13.38 $24.88 $21.44
19991214 $6.44 $35.81 $11.25 $24.00 $21.19
19991215 $6.44 $37.25 $11.69 $24.00 $21.44
19991216 $6.19 $36.63 $13.00 $24.00 $22.00
19991217 $6.00 $36.38 $13.00 $25.38 $21.94
19991220 $6.31 $36.00 $14.13 $23.63 $20.25
19991221 $6.00 $36.38 $13.75 $23.38 $19.81
19991222 $5.88 $36.50 $12.38 $23.56 $20.25
19991223 $6.63 $37.69 $12.81 $24.13 $21.00
19991227 $6.31 $37.13 $12.31 $23.38 $21.25
19991228 $6.19 $38.63 $13.00 $25.00 $21.63
19991229 $6.25 $38.25 $13.38 $24.38 $21.63
19991230 $6.25 $37.81 $14.50 $24.50 $21.94
19991231 $6.13 $39.38 $13.38 $25.06 $22.38
20000103 $6.06 $39.81 $12.88 $23.63 $22.25
20000104 $6.06 $38.50 $13.06 $22.75 $22.81
20000105 $6.00 $39.19 $12.63 $23.00 $23.50
20000106 $4.50 $39.81 $14.00 $24.31 $23.63
20000107 $3.88 $38.69 $13.00 $23.75 $23.56
20000110 $4.94 $39.94 $13.63 $23.69 $23.63
20000111 $4.94 $40.69 $14.00 $23.00 $23.56
20000112 $5.25 $38.94 $13.50 $21.94 $23.38
20000113 $5.19 $39.81 $13.50 $22.06 $23.50
20000114 $5.06 $42.06 $13.88 $21.81 $23.50
20000118 $5.19 $42.38 $13.75 $21.25 $23.50
20000119 $5.25 $41.69 $13.69 $21.00 $23.63
20000120 $5.00 $41.94 $14.00 $20.81 $23.50
20000121 $5.00 $41.00 $14.44 $20.19 $23.50
20000124 $5.56 $39.38 $14.88 $19.50 $23.50
20000125 $5.31 $37.50 $13.94 $19.06 $23.13
20000126 $5.56 $38.00 $13.94 $18.81 $23.50
20000127 $5.75 $37.44 $13.25 $18.75 $23.19
20000128 $5.88 $36.00 $13.50 $18.88 $22.56
20000131 $5.75 $36.38 $13.50 $18.31 $20.31
20000201 $5.88 $35.94 $14.16 $18.63 $20.81
20000202 $6.00 $35.31 $13.63 $18.13 $20.94
20000203 $6.06 $35.44 $14.38 $18.00 $20.63
20000204 $6.25 $34.75 $13.81 $17.13 $20.75
20000207 $6.38 $34.00 $14.19 $16.50 $19.69
20000208 $6.25 $32.94 $15.00 $16.94 $19.44
20000209 $6.25 $33.13 $14.13 $16.69 $18.44
20000210 $6.31 $32.56 $14.00 $16.69 $17.00
20000211 $6.25 $32.31 $14.63 $16.31 $16.94
20000214 $6.69 $32.56 $15.44 $16.19 $16.94
20000215 $6.81 $32.06 $15.63 $16.31 $16.44
20000216 $6.81 $31.56 $16.56 $15.81 $15.94
20000217 $6.88 $31.75 $16.75 $15.50 $15.63
20000218 $6.88 $29.63 $17.00 $15.06 $15.63
20000222 $6.81 $30.25 $15.56 $15.06 $15.06
20000223 $6.75 $29.94 $13.50 $14.75 $14.88
20000224 $6.50 $28.69 $12.88 $14.56 $14.63
20000225 $6.38 $28.25 $12.38 $14.44 $14.31
20000228 $7.00 $28.13 $12.50 $13.88 $14.13
20000229 $7.00 $26.81 $12.63 $13.81 $14.00
20000301 $7.13 $26.88 $13.75 $13.69 $13.56
20000302 $7.00 $26.50 $13.25 $13.63 $13.50
20000303 $7.25 $26.75 $13.00 $14.31 $14.13
20000306 $7.75 $27.06 $13.88 $13.81 $13.31
20000307 $8.19 $26.81 $14.13 $13.88 $13.13
20000308 $8.38 $28.25 $14.25 $14.38 $13.81
20000309 $8.13 $28.88 $13.50 $15.13 $13.94
20000310 $8.06 $28.44 $13.25 $16.25 $13.63
20000313 $8.06 $28.81 $14.00 $16.88 $14.19
20000314 $7.88 $29.31 $13.81 $16.50 $14.06
20000315 $8.00 $31.00 $13.63 $18.06 $15.00
20000316 $8.00 $33.75 $13.38 $19.31 $16.19
20000317 $8.13 $32.56 $13.00 $19.13 $16.31
20000320 $7.94 $31.56 $11.94 $18.94 $16.75
20000321 $7.88 $31.94 $12.19 $18.88 $16.88
20000322 $7.63 $31.63 $12.00 $18.50 $16.56
20000323 $8.06 $32.38 $11.75 $18.19 $16.69
20000324 $8.06 $32.00 $11.75 $18.06 $16.63
20000327 $8.06 $31.94 $11.88 $17.50 $15.88
20000328 $8.00 $31.94 $12.13 $17.06 $15.94
20000329 $7.88 $31.69 $12.00 $16.88 $15.63
20000330 $8.00 $32.63 $12.25 $17.25 $15.38
20000331 $7.63 $34.56 $12.13 $16.88 $16.00
20000403 $7.75 $35.38 $13.00 $16.94 $15.94
20000404 $8.19 $34.69 $13.00 $16.94 $15.94
20000405 $8.19 $35.50 $13.00 $16.69 $16.31
20000406 $8.25 $36.50 $13.50 $16.19 $16.56
20000407 $8.13 $36.00 $13.50 $15.94 $16.63
20000410 $8.06 $36.25 $12.75 $16.44 $17.44
20000411 $8.06 $36.50 $13.75 $16.50 $17.19
20000412 $8.25 $36.69 $12.94 $16.81 $17.06
20000413 $8.38 $37.00 $12.88 $17.00 $17.25
20000414 $8.13 $35.81 $12.38 $16.13 $16.56
20000417 $8.06 $34.25 $13.00 $15.94 $16.63
20000418 $8.25 $33.06 $13.38 $15.94 $16.69
20000419 $8.13 $33.63 $12.31 $16.06 $17.00
20000420 $8.13 $32.94 $12.31 $15.25 $16.75
20000421 $0.00 $0.00 $0.00 $0.00 $0.00
20000424 $8.06 $32.25 $12.38 $14.25 $16.69
20000425 $8.06 $33.06 $12.00 $14.00 $17.25
20000426 $8.00 $32.63 $12.00 $13.69 $16.63
20000427 $8.00 $31.94 $12.63 $13.56 $16.50
20000428 $8.00 $31.50 $12.88 $13.50 $16.25
20000501 $8.06 $30.31 $13.44 $13.56 $16.56
20000502 $8.00 $30.63 $13.41 $13.44 $16.00
20000503 $7.75 $30.69 $13.44 $13.38 $15.75
20000504 $7.94 $30.81 $13.44 $12.88 $15.75
20000505 $7.63 $31.56 $13.13 $12.63 $16.13
20000508 $7.50 $31.31 $13.00 $12.94 $16.19
20000509 $7.63 $31.88 $12.75 $12.94 $16.38
20000510 $7.63 $32.06 $12.00 $12.81 $15.94
20000511 $7.63 $33.06 $11.88 $13.19 $16.88
20000512 $7.63 $33.38 $11.50 $13.00 $17.44
20000515 $7.25 $33.81 $11.63 $13.81 $17.31
20000516 $7.13 $33.94 $11.00 $14.25 $17.56
20000517 $6.75 $33.88 $11.00 $14.13 $17.50
20000518 $6.38 $32.75 $11.00 $13.94 $17.88
20000519 $6.31 $31.94 $11.00 $13.00 $17.50
20000522 $6.63 $31.63 $10.50 $12.56 $17.75
20000523 $7.00 $30.06 $10.25 $11.88 $17.44
20000524 $7.19 $30.06 $9.88 $11.81 $17.00
7
<PAGE> 9
PROJECT PAC / MAY 26, 2000
U.S. CAN STOCK PRICE PERFORMANCE
THE AVERAGE STOCK PRICE OVER THE LAST THREE YEARS HAS NOT REACHED THE OFFER
PRICE OF $20 PER SHARE
----------------------------------------------------
PERIOD PRIOR TO 3/22/00 AVERAGE PRICE
----------------------------------------------------
1 Week $14.24
1 Month $13.26
3 Months $15.48
6 Months $17.54
1 Year $18.59
2 Years $17.42
3 Years $17.03
----------------------------------------------------
8 [SALOMON SMITH BARNEY LOGO]
<PAGE> 10
PROJECT PAC / MAY 26,2000
HISTORICAL FIRST QUARTER RESULTS
<TABLE>
<S> <C> <C> <C> <C>
(Dollars in millions) INDUSTRY COMPARABLES
------------------------------------------------------------------- INCLUDING, BWAY,
Q1-99 Q1-00 % Change CROWN CORK & SEAL
------------------------------------------------------------------- AND U.S. CAN, ALL
BWAY Corp. (a) EXPERIENCED WEAK FIRST
Revenue $ 121.5 $ 119.7 (1.5%) QUARTERS IN 2000.
EBITDA $ 13.6 $ 12.2 (11.2%)
Crown Cork & Seal
Revenue $1,793.6 $1,640.0 (9.4%)
EBITDA $ 284.6 $ 262.2 (8.6%)
U.S. Can
Revenue (b) $ 218.7 $ 207.7 (5.0%)
EBITDA (b) $ 29.0 $ 26.6 (8.3%)
-------------------------------------------------------------------
</TABLE>
---------------------------
(a) Bway's second fiscal quarter ended April 4, 1999 and April 2, 2000,
respectively.
(b) Proforma for acquisition of May.
9 [SALOMON SMITH BARNEY LOGO]
<PAGE> 11
PROJECT PAC / MAY 26,2000
VALUATION SUMMARY
<TABLE>
<S> <C> <C> <C> <C>
-----------------------------------------------------------------------------------------------------
EBITDA Multiple Per Share Price (a) Implied EBITDA Multiple (b) A PURCHASE PRICE OF
--------------- ------------------- --------------------------- $20 PER SHARE EQUATES
Low High Low High Low High TO A MULTIPLE OF 5.9x
----------------------------------------------------------------------------------------------------- EBITDA OR 6.1x EBITDA,
WHEN ADJUSTED FOR THE
Public Market Comparables 5.0x -- 5.7x $13.10 -- $18.47 5.2x -- 5.9x COST OF REDEEMING THE
OUTSTANDING HIGH YIELD
Precedent Transactions 5.7x -- 6.3x $18.47 -- $23.06 5.9x -- 6.5x BOND ($19.2 MILLION).
Discounted Cash Flow 5.6x -- 6.2x $18.00 -- $22.00 5.8x -- 6.3x
LBO 5.6x -- 5.9x $18.00 -- $20.00 5.8x -- 6.1x
-----------------------------------------------------------------------------------------------------
</TABLE>
(a) Assumes EBITDA of $106.4 million, $350 million of net debt and 13.9
million diluted shares outstanding.
(b) Adjusted to include premium of $19.2mm to refinance existing bonds.
10 [SALOMON SMITH BARNEY LOGO]
<PAGE> 12
PROJECT PAC / MAY 26,2000
REXAM PLC ACQUISITION OF AMERICAN NATIONAL CAN GROUP, INC.
TRANSACTION OVERVIEW
- On April 3, 2000 Rexam PLC agreed to acquire American National Can (ANC)
for $18.00 per share in cash, a premium of 37% to ANC's closing price of
$13.13 on March 31
- Transaction value of approximately $2.0 billion, including $983.9
million of assumed net debt
- The offer has been unanimously accepted by the board of ANC as well as
Pechiney, ANC's largest shareholder with approximately 45% ownership in
the entity
- Financed out of a new committed bank facility that has been fully
underwritten
AMERICAN NATIONAL CAN
- ANC is the world's second largest beverage can manufacturer serving the
soft drink and brewing industries around the world.
- The Company is the largest can maker in Europe and maintains the number
two position in the U.S.
- ANC holds an international presence in the faster growing emerging markets
of South and Central America and the Far East
TRANSACTION MULTIPLES
Equity Value Firm Value FV/Revenue FV/EBITDA FV/EBIT
-----------------------------------------------------------------------
$990.4 $1974.4 0.85x 5.68x 8.72x
-----------------------------------------------------------------------
U.S. CAN MULTIPLES
Equity Value Firm Value FV/Revenue FV/EBITDA FV/EBIT
-----------------------------------------------------------------------
$277.8 $ 632.8 0.76x 5.95x 8.94x
-----------------------------------------------------------------------
11 [SALOMON SMITH BARNEY LOGO]
<PAGE> 13
PROJECT PAC / MAY 26,2000
COMPARABLE COMPANY ANALYSIS
<TABLE>
<CAPTION>
FIRM VALUE / 1999 FIRM VALUE / EBITDA(c) COMPARABLE
STOCK MARKET FIRM ------------------------ ---------------------- COMPANIES ARE TRADING
COMPANY PRICE(a) CAP VALUE(b) REVENUES EBITDA EBIT 2000 2001 AT BETWEEN 4.3 AND 6.0
------------------------------------------------------------------------------------------------------ TIMES EBITDA.
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Rigid Packaging
U.S. Can $20.00 $ 278 $ 633 0.8x 5.9x 8.9x 5.2x 4.8x
Ball Corporation (BLL) $30.06 $ 904 $2,138 0.6x 4.8x 7.7x 4.5x 4.4x
Bway Corporation (BY) 7.19 67 234 0.5 6.0 10.9 4.5 4.3
Crown Cork & Seal (CCK) 17.00 2,186 7,140 0.9 5.4 8.9 5.3 5.2
Owens-Illinois (OI) 11.81 1,736 8,037 1.5 5.7 9.2 5.4 5.2
Silgan Corporation (SLGN) 9.88 173 1,058 0.6 4.3 6.6 4.1 3.9
------------------------------------------------------------------------------------------------------
MEDIAN -- -- -- 0.6x 5.4x 8.9x 4.5x 4.4x
MEAN -- -- -- 0.8 5.2 8.7 4.8 4.6
------------------------------------------------------------------------------------------------------
</TABLE>
Note: EBITDA, EBIT, Net Income to Common, and EPS adjusted for unusual and
nonrecurring items.
LTM: Latest Twelve Months.
NM: Not Meaningful.
(a) Stock price as of May 24, 2000.
(b) Firm Value equals equity value (all fully diluted shares at the stock
price less any option proceeds) plus straight debt, minority interest,
straight preferred stock, all out-of-the-money convertibles, less
investments in unconsolidated affiliates and cash.
(c) Based on Wall Street research reports.
12 [SALOMON SMITH BARNEY LOGO]
<PAGE> 14
PROJECT PAC / MAY 26,2000
PRECEDENT TRANSACTIONS
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
FIRM VALUE/ AN ANALYSIS OF
---------------------- EBITDA PRECEDENT
DATE ACQUIROR TARGET FIRM VALUE SALES EBITDA EBIT MARGIN TRANSACTIONS
------------------------------------------------------------------------------------------------------------- INDICATES AN
Apr-00 Rexam PLC American National Can $1,974 0.9x 5.7x 8.7x 15.0% EBITDA MULTIPLE
Dec-99 U.S. Can May Verpackungen $ 85 0.6 6.4 12.7 9.1 RANGE BETWEEN
Nov-98 Rexam PLC PLM $8,043 0.9 6.0 11.8 15.0 5.7x AND 6.3x.
Feb-98 Silgan Campbell Soup - Food Cans $ 123 0.6 6.1 10.5 9.5
Jan-98 Suiza Foods Continental Can $ 345 0.6 6.9 11.0 8.7
Dec-97 Ball Corporation Reynolds Metals' Beverage Can Operations $ 746 0.6 7.0 14.7 14.3
Nov-96 Doughty Hanson Pechiney & Schmalbach Food Can Operations DM1,350 0.7 7.3 11.0 13.8
Aug-96 U.S. Can Crown Cork & Seal Divestiture $ 59 0.5 4.5 8.5 11.1
Jun-95 Silgan American National Can - Food Can $ 362 0.6 5.7 NM 10.8
-----------------------------------------------------------------------------------
MEDIAN 0.6x 6.1x 11.0x 11.1%
-----------------------------------------------------------------------------------
</TABLE>
13 [SALOMON SMITH BARNEY LOGO]
