Alcan rejects Alcoa bid again

Alcan  said on Wednesday that Alcoa's  $28.3 billion (14.2 billion pounds) takeover offer was not good enough, but the Canadian aluminium maker did not shed any light on its strategy to counter the hostile bid.

 "The outcome still remains unknown. The value remains inadequate," said Alcan spokeswoman Anik Michaud, reacting to Alcoa's announcement that it had filed documents with U.S. antitrust regulators related to its offer.

"The board has already rejected the offer and continues to evaluate all options to maximize shareholder value," Michaud added.

The hostile offer by U.S.-based Alcoa is set to expire on July 10, but analysts expect it to be extended as the company seeks approval from antitrust authorities.

Alcan, which previously rejected the offer as failing to properly value its assets and prospects, is expected to unveil its strategy in the coming weeks.

Its options include trying to remain independent, seeking a white knight or merger partner to step in with a friendly competing bid, or even taking a takeover run at Alcoa.

There have been reports that big international miners such as BHP Billiton and Rio Tinto are interested in looking at Alcan.

Aside from antitrust concerns, prospective suitors for Alcan would have to meet terms of the company's "continuity agreement" with Quebec, where it gets cheaper hydro-electric power and other rights in exchange for keeping its head office in Montreal and maintaining investment in the province.

Earlier on Wednesday, Alcoa said it filed with the U.S. Federal Trade Commission and the Department of Justice the notification and report forms required by the Hart-Scott-Rodino Act regarding its May 7 offer. The FTC and DOJ administer the antitrust act.

In a statement, Alain Belda, chairman and chief executive of Alcoa, said the company was fully committed to completing the proposed takeover.

"We have a well-developed, detailed road map to resolve regulatory issues through targeted divestitures in the appropriate industry segments," he said.

"We also have an unparalleled ability to make commitments that meet and exceed the terms of Alcan's continuity agreement with the government of Quebec and the Investment Canada Act," Belda added.

Alcoa spokesman Kevin Lowery said the company is working on other antitrust filings.

"We have already made antitrust, competition filings in other jurisdictions, and there are others that we are in the midst of finalizing and we will completing those very shortly," he said.

Alcoa is offering $58.60 in cash and 0.4108 of a share for each Alcan share. Based on Alcoa's stock price on Wednesday afternoon, the blended value of the offer was $74.97 a share.

Alcan stock fell 87 cents to $83.45 on the New York Stock Exchange and C$1.45 to C$88.17 on the Toronto Stock Exchange on Wednesday as both markets dropped.

Despite the decline, Alcan's New York share price was still some 11 percent above Alcoa's offer.

Alcoa shares fell 74 cents to $39.85 in New York.