Can Alcan shareholders refuse Alcoa’s offer?

May 8: Aluminium manufacturer Alcan has advised its shareholders to not make a decision on accepting yesterday’s offer from rival Alcoa until it has been able to complete a review on its possible impact on their interests.
But the offer, a cash and stock deal that including debt values Alcan at $33bn, is attractive: some 20 percent above its all-time high on May 4.
The move would create the world’s largest aluminium producer with sales of more than $50bn, ahead of Russia’ Rusal, which in March merged with Sual and Swiss-based commodities trader Glencore International to form United Company Rusal.
It also raises the issue of what will happen to the packaging interests of both Alcan and Alcoa, which could be combined and spun off. These include both aluminium-based products and flexible packaging using plastics.
Both have been divesting rolling business such as canstock, conversion operations that have suffered with rising aluminium prices. Alcan’s spinning off of its rolling business as Novelis two years ago suffered and is being acquired by India’s Hindalco.