Pittsburgh – Canadian aluminum maker Alcan Inc. on Tuesday urged its shareholders to reject a hostile $27 billion takeover bid by U.S.-based rival Alcoa Inc., saying the offer failed to reflect the company’s value.
Yves Fortier, chairman of Alcan’s board of directors, said in a statement that the board had thoroughly evaluated Alcoa’s offer and concluded it was not in the best interests of Alcan shareholders.
“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,” he said.
Fortier said the companies have “fundamentally different approaches and track records in creating shareholder value.”
Alcoa launched its cash and stock bid for Montreal-based Alcan earlier this month, after almost two years of private talks failed to produce an agreement.
Alcoa spokesman Kevin Lowery said his company, based in Pittsburgh with executive offices in New York, was reviewing Alcan’s lengthy response, which was filed with regulators.
“We continue to believe that our offer is full, fair and provides attractive value to Alcan shareholders,” he said.
The combined company would have 188,000 employees.
