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Alcoa Stands Pat on Alcan

It fails to raise its offer despite a surge in Alcan's share price.
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Alcoa (AA) - Get Alcoa Corp. Report reaffirmed its offer for Alcan (AL) - Get Air Lease Corporation Class A Report a day after the Canadian aluminum giant brushed off a hostile $27 billion bid by its Pittsburgh-based rival.

Alcoa said its offer, launched earlier this month, remains the "most compelling choice for Alcan's shareholders." Alcoa said it has "studied Alcan's response and have not seen anything that would lead us to re-evaluate our offer."

Alcoa "is the most logical partner for Alcan," CEO Alain Belda said in a press release, "and our proposed combination is driven by an unquestionable strategic and industrial logic."

On Tuesday, Alcan rejected Alcoa's cash-and-stock offer, calling it highly conditional and saying it fails to offer shareholders substantial value. Alcan pointed out that its shares have sharply outperformed Alcoa's during Belda's term as CEO, which started back in 1999.

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Alcoa's comments came at the end of a day that saw Alcan shares surge 6% to $85.89 amid reports that the company has approached Australian miner

BHP

(BHP) - Get BHP Group Ltd Sponsored ADR Report

over a possible deal.

Alcoa, which has come under fire from activist shareholders at hedge fund Jana Partners, said Wednesday that its offer gives Alcan holders a "full and fair" deal -- even though it's worth $10 less than Alcan's recent stock price.