Alcan’s Board Recommends Shareholders Reject Alcoa’s Acquisition Offer

Dick Evans, Alcan’s president and CEO, commented, “With world-leading assets and technology, an excellent operating record, strong projected cash flows and an exceptionally attractive pipeline of growth opportunities, there are many options available to Alcan to create value for its shareholders.

“Despite two years of approaches by Alcoa, at no time was Alcan presented a compelling proposal - either in terms of economics, structure or conditionality - that was in the best interests of our shareholders. Alcan remained disciplined throughout these discussions, insisting on basic safeguards for our shareholders before engaging in substantive negotiations. Alcoa’s consistent refusal to agree to standard and reasonable confidentiality and standstill agreements effectively terminated the talks. Alcan’s superior performance from both an operating and a share price perspective during this period validates the disciplined process we followed.”