A better deal for Alcan
TEXT OF STORY
Doug Krizner: There was speculation yesterday this might happen: The Canadian aluminum maker Alcan has received a $38 billion takeover bid. It’s being made by the London-based mining company Rio Tinto and its better than the hostile offer Alcan received from its U.S. rival Alcoa. Stephen Beard reports from London.
Stephen Beard: When the Canadian company Alcan rejected the advances of the American miner Alcoa it said the American offer was too low. Only $28.8 billion.
Well Alcan was right, it seems. Rio Tinto has offered 30 percent more.
Alcan’s board has recommended that its shareholders accept the bid.
Analysts say there could be a counter offer, perhaps even from the rejected suitor. But, says David Buik of brokers BGC, Rio Tinto seems likely to win the day.
David Buik: It’s a cash bid and it’s not paper for paper. And the general feeling in the London market today, and in the rest of the world, is that this deal will probably go through.
With metals hitting record prices, more takeovers are expected in the mining industry.
Some analysts suggest that Alcoa, having lost out in the battle for Alcan, could itself become a target.
In London, this is Stephen Beard for Marketplace.
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