MONTREAL – The directors of ALCAN INC. have rejected the unsolicited US$27-billion takeover offer made earlier this month by New York-based ALCOA INC. The board called the bid inadequate in multiple respects and contrary to the best interests of Alcans shareholders. Alcoa offered US$58.60 in cash plus 0.4108 of an Alcoa share for each share of Alcan.
The companies had been in merger talks for two years until they abandoned the idea late last year. Reports surfaced that they could not agree on the individuals to lead the management team for the combined company.
If Alcan shareholders reject Alcoas bid, the way would be open for Alcan to pursue other potential takeover targets. Alcan president and CEO Dick Evans said his company is in talks with other companies, but would not elaborate further.
For its part, Alcoa is sticking to its offer, claiming it is driven by an unquestionable strategic and industrial logic. It points to potential savings of US$1 billion thanks to synergies that will be available to a combined aluminum maker. However, the door is open for an increased offer if another bidder comes forward.
(Can we expect a bidding war for Alcan or, conversely, Alcan to make a hostile bid for Alcoa? M.S.)
Further news will be available at either www.Alcan.com or www.Alcoa.com.