Canadian aluminum maker Alcan Inc. has denied a request by rival Alcoa Inc. for further talks on Alcoa's hostile $27.5 billion (€20.2 billion) takeover bid.
Alcan's board of directors unanimously rejected the unsolicited offer as inadequate in May, urging its shareholders to follow suit. But Alcoa appealed to Alcan last month, asking for access to business documents reportedly provided to third parties.
On June 27, Alcan's president and chief executive, Richard B. Evans, said in an e-mail message to Alcoa's chairman and chief executive, Alain J.P. Belda, that Alcan saw "no reason to engage in further discussions or correspondence."
Belda replied in a letter the following day that Alcoa still wanted to consider looking for greater value for Alcan shareholders, according to a filing with the Securities and Exchange Commission.
Alcoa spokesman Kevin Lowery said Alcan had indicated it would discuss the proposed deal further if Pittsburgh-based Alcoa signed confidentiality and standstill agreements. He said Alcoa still hopes to complete the transaction.
"We stand ready to do this," he said. "We're a little perplexed about the change of heart."
Anik Michaud, a spokeswoman for Alcan, declined to confirm reports that Alcan had provided documents pertaining to its business to third parties.
"Alcoa had two years to make a compelling offer and they never did," she said. "All we've said so far is we are actively pursuing other alternatives."
Michaud said she would not rule out anything related to a possible deal, noting that Alcan had established a committee to review all options.
In May, Canada's Globe and Mail newspaper reported that Alcan had entered into talks with Australian mining giant BHP Billiton Ltd., citing people familiar with the matter. Analysts have said such negotiations could be under way, and that other suitors may be waiting in the wings as Alcan seeks a richer offer for its shareholders.
Alcoa, based in Pittsburgh, launched its cash-and-stock bid for the Montreal-based firm on May 7, after almost two years of private talks failed to produce a negotiated agreement.
Alcan's board recommended shareholders reject the bid, saying it undervalued the company and failed to serve the best interests of investors.
It also said it had rejected two unsolicited offers by Alcoa in 2005 because both failed to adequately compensate Alcan shareholders, were highly conditional and contained regulatory and other risks.
Alcoa founded Alcan in 1902 before spinning it off as a separate company in 1928. The companies retained largely common ownership until 1951, when major shareholdings were divested for antitrust reasons under a U.S. court order.
The recombined company would have 188,000 employees in 67 countries, alumina capacity of about 21.5 million metric tons and aluminum capacity of approximately 7.8 million metric tons, according to Alcoa. Alumina is used to make aluminum.
The companies were the world's top two aluminum makers until recently. The newly formed United Company Rusal surpassed Alcoa as the world's largest aluminum producer in March.
Shares of Alcoa were up 41 cents, or 1 percent, to $41.50 in late afternoon trading Tuesday. Alcan added $1.97, or 2.4 percent, to $84.58. The stock has traded between $37.42 and $87.84 for the past 52 weeks.
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