Alcan Rejects Alcoa Bid

Claims $33 billion bid did not adequately value the company; Alcan now rumored to be in talks with Australia’s BHP Billiton.

MONTREAL - Alcan rejected Alcoa’s bid on Tuesday for a hostile takeover and media reports have suggested that the company may look to BHP Billiton.
Alcan said the $33 billion bid from Alcoa did not adequately value the company.
“Alcan's Board of Directors has thoroughly evaluated Alcoa's offer and concluded that it fails to meet the best interests of Alcan shareholders,” commented Yves Fortier, chairman of Alcan’s board of directors. “It does not adequately reflect the value of Alcan's extremely attractive assets, strategic capabilities and growth prospects, does not offer an appropriate premium for control of Alcan, and is highly conditional and uncertain. Furthermore, it is clear to us that Alcan and Alcoa have fundamentally different approaches and track records in creating shareholder value. We are convinced that the proposed Alcoa-led acquisition of Alcan is not the right choice for our shareholders.”
Canada’s Globe and Mail newspaper reported Wednesday that Alcan is in talks with Australia’s BHP Billiton.
The paper quoted Alcan’s CEO Dick Evans as saying the company is in “ongoing discussions with other third parties.”
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