Alcoa To Make $33 Billion Bid For Alcan

PITTSBURGH - Alcoa announced Monday that it will make an offer for Alcan Inc. for $73.25 per share or $33 billion.

“This offer follows almost two years of discussions between our companies regarding a variety of potential business combination transactions, including unsuccessful Board-level discussions of a merger transaction last fall,” said Alain J.P. Belda, Chairman and CEO of Alcoa. “We are very disappointed that those efforts did not result in a negotiated transaction – a conclusion we would have strongly preferred. We believe firmly in the compelling strategic rationale behind the combination of Alcoa and Alcan and are convinced that this transaction creates substantial value for both sets of shareholders and for our customers around the world. We are therefore taking our offer directly to Alcan shareholders.”

The combined company would have increased resources to fund research and development projects designed to reduce emissions of greenhouse gases, improve the efficiency of the smelting process and pursue new technologies designed to facilitate low cost aluminum production.

The transaction is expected to close by the end of 2007.