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Friday's raid on town of Bulo Marer, south of Mogadishu, came hours after the French intervention in Mali.
BBC: Mali Islamists seize town amid French intervention
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On Friday, about 50 helicopter-borne French commandos launched an assault on the al-Shabab stronghold of Bulo Marer, where it is believed Mr Allex was being held.
BBC: Somalia's al-Shabab 'to kill' French hostage Denis Allex
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At least 17 al-Shabaab fighters and two French soldiers died in Friday's mission in the village of Bulo-Marer, about 75 miles (120 kilometers) northwest of Mogadishu.
CNN: STORY HIGHLIGHTS
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On Friday, about 50 French commandos launched an assault by helicopter on the al-Shabab stronghold of Bulo Marer, believing Mr Allex was being held in the town.
BBC: Denis Allex: French agent 'killed' by Somalia al-Shabab
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The racket of helicopter blades and volleys of gunfire startled Bulo Marer town residents out of their sleep Friday night, when French paratroopers descended on the camp.
CNN: STORY HIGHLIGHTS
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Then, French commandos went into action in Somalia, swooping on the town of Bulo Marer in an attempt to free Denis Allex, who was kidnapped in July 2009.
BBC: UK troops to assist Mali operation to halt rebel advance
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Al-Shabab said it had advance warning of the attack and Mr Allex - a codename for the French intelligence agent - was not in Bulo Marer at the time.
BBC: Denis Allex: French agent 'killed' by Somalia al-Shabab
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The skirmish in Bulo Marer, about 75 miles northwest of the capital Mogadishu, ended with a French soldier and 17 Islamist fighters dead, according to the French Defense Ministry.
CNN: U.S. supported France's failed hostage rescue in Somalia