NEW YORK - US aluminum giant Alcoa said Monday it was offering 33 billion dollars for Canadian rival Alcan, saying the acquisition would create a "premier" global leader in the sector.
Alcoa, the world`s largest aluminum company, said it was offering 73.25 US dollars per share for Alcan, a 32 percent premium to Alcan`s closing price on Friday.
"The transaction will create a premier diversified global aluminum company, with a complementary portfolio of assets and enhanced growth opportunities, and better position the combined company to build value for shareholders," Alcoa said in a statement.
Alain Belda, chairman and chief executive of Alcoa, said the offer was made after nearly two years of discussions between the two firms on a tie-up.
"We are very disappointed that those efforts did not result in a negotiated transaction -- a conclusion we would have strongly preferred," he said.
"We believe firmly in the compelling strategic rationale behind the combination of Alcoa and Alcan and are convinced that this transaction creates substantial value for both sets of shareholders and for our customers around the world. We are therefore taking our offer directly to Alcan shareholders."
Alcoa said a tie-up would create "a stronger, more diverse global competitor with the scale and cost structure to be competitive over the long term within a rapidly changing industry landscape."
The US firm said a combined company would also have increased financial resources for environmental initiatives such as curbing greenhouse gas emissions.
05/07/2007 12:15 GMT