Jul 25 2007
Rio Tinto plc and Alcan Inc. announce that Rio Tinto Canada Holding Inc., an indirect wholly-owned subsidiary of Rio Tinto, will today commence its offer for Alcan and mail its offer and take-over bid circular to Alcan shareholders. The Alcan directors' circular containing the Alcan board's unanimous recommendation to accept the Rio Tinto Canada Holding offer is also being mailed to Alcan shareholders. Earlier this month, Rio Tinto and Alcan reached an agreement for Rio Tinto Canada Holding to make an offer to acquire all of Alcan's outstanding common shares for US$101 per common share in a recommended, all cash transaction.
The offer represents a total consideration for Alcan common shares of approximately US$38.1 billion.
The offer is open for acceptance until 6:00 pm (Eastern Time) on September 24, 2007, unless extended, and is subject to a number of conditions including valid acceptances by holders of not less than 66 2/3 per cent of Alcan shares on a fully diluted basis. The board of Rio Tinto has approved the transaction. The offer is expected to close in the fourth quarter of 2007.