Alcoa Inc. yesterday indicated it might increase its hostile offer for Canadian rival Alcan Inc. that is already worth $33 billion, according to a securities filing.
Alcoa Inc. CEO Alain Belda said in a letter dated June 28 and addressed to Alcan CEO Richard Evans that the Alcoa was “ready to consider value for your shareholders beyond that reflected in our outstanding offer.” Alcan Inc. management had rejected a friendly offer from Alcoa for a negotiated deal in November, leading Alcoa to pursue Alcan holders directly. The filing did not indicate when or by how much Alcoa might adjust its offer.
In early May, Alcoa made an offer to Alcan stockholders of $75.66 a share. The tender offer is due to expire July 10, unless extended. Alcoa has said it would withdraw the offer if it did not get at least two-thirds of Alcan shares. Alcoa shares were up 41 cents, at $41.50 a share in mid-afternoon trading. If successful in its bid, the aluminum company headquartered in New York with its operations center in Pittsburgh would again become the world's largest aluminum maker, by-passing Russia's United Company Rusal. (pittsburghlive.com)