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Article: Rio Tinto Bids $38 Billion for Alcan
- Article from:
- AP Online
- Article date:
- July 12, 2007
CopyrightCopyright 2007 Associated Press/AP Online. This material is published under license from the publisher through YellowBrix, Alexandria, Virginia. All inquiries regarding rights should be directed to YellowBrix. (Hide copyright information)
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SYDNEY, Australia - Mining giant Rio Tinto has offered to buy Canadian aluminum company Alcan Inc. for $38.1 billion in cash, the companies said Thursday, in a friendly takeover that counters a hostile bid by U.S.-based Alcoa.
The bid exceeds a $28 billion offer of cash and stock from Alcoa Inc. that Alcan's board rejected in May, and would create the world's largest aluminum company.
In a joint statement, Rio Tinto and Alcan said the Anglo-Australian miner was offering $101 per share for Alcan and that Alcan's board was recommending the deal to shareholders.
"This transaction combines two leading and complementary aluminum businesses, and is a further step in Rio Tinto's strategy of ...