Canadian aluminum maker Alcan has rejected the $24.7-billion bid from rival Alcoa that would have been the biggest takeover in the metals industry, and signalled its intention to look elsewhere. Alcoa’s $74.60-per-share bid was inadequate, Alcan’s CEO said today, reigniting rumors that both companies may be ripe takeover targets.
Alcoa had hoped the deal would help it buck Chinese and Russian rivals, and the company is expected to up its offer. But some observers think the money won't help. "Alcan is even more of a national icon in Canada than Alcoa is in the US,'' says an analyst. "The backlash could make this a very difficult deal to get done."