Alcan Says Senior Executives to Leave After Sale

Oct. 16 -- Alcan Inc., the world's third- largest aluminum company, said Chief Financial Officer Michael Hanley and at least two other senior executives will resign after the $38.1 billion takeover by Rio Tinto Group. Michel Jacques, head of primary metals, and David McAusland, executive vice president of corporate development and chief legal officer, also will step down ``following the completion of the acquisition,'' Montreal-based Alcan said today in a regulatory filing. Alcan spokesman Michael Kuhn said Oct. 11 that Hanley and Jacques probably would leave after an unspecified transition period. Rio expects to complete the purchase this quarter. The London-based company is acquiring Alcan to overtake United Co. Rusal as the world's largest aluminum producer as metal demand rises from aerospace manufacturers and countries including China. Rio's shareholders have approved the transaction, which trumped a hostile $27.7 billion offer from Alcoa Inc. The new Rio Tinto Alcan unit will be led by current Alcan Chief Executive Officer Dick Evans. Rio Tinto's Phillip Strachan will become the unit's CFO, and Jacques will be replaced by Jacynthe Cote, now head of Alcan's bauxite and alumina business. Alcan shares fell 4 cents to C$98.27 at 3:59 p.m. in Toronto Stock Exchange trading. They have more than doubled in the past year.