MONTREAL, May 22 -- Canadian aluminum giant Alcan Inc. told shareholders Tuesday to reject rival Alcoa Inc.'s $27.45 billion hostile takeover, calling it inadequate.
The board recommended Alcan shareholders not tender any of their shares to Alcoa, Alcan said.
Alcan's board concluded Alcoa's offer did "not adequately reflect the value of Alcan's extremely attractive assets, strategic capabilities and growth prospects," nor did it "offer an appropriate premium for control of Alcan, and is highly conditional and uncertain," Chairman Yves Fortier said.
"Furthermore, it is clear to us that Alcan and Alcoa have fundamentally different approaches and track records in creating shareholder value," Fortier said.
The Montreal company, which split from parent Alcoa in 1928, said it was exploring all options for defenses, which could include linking up with another company or turning around to bid on Alcoa.
New York-based Alcoa did not say if it would sweeten its $74.70-a-share offer, which expires July 10. The companies have not had discussions since Alcoa announced its hostile bid May 7, an Alcoa spokesman said.
Alcan's shares closed at $81.03 on the New York Stock Exchange.
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