Rexam's glass packaging operations are increasingly being viewed within the industry as a non-core disposal candidate. There is a general expectation within the industry that Rexam will ultimately come out of glass packaging. Rexam is considered to be a frontrunner in Saint-Gobain's pending Calmar auction. Calmar produces pumps which are used in cosmetics packaging and are viewed as non-core to Saint Gobain's core building materials operations. If Rexam did decide to proceed with a sale, Irish competitor Ardagh is viewed as a likely buyer. Ardagh is known to be keen to acquire glass-packaging assets in Europe after issuing a EUR 125m 11% PIK note in February 2005.