Alcoa ready to look at increased offer after Alcan rejects initial proposal

New York, July 3 - Alcoa Inc. said it is "ready to consider" offering more for Alcan Inc. after Alcan rejected Alcoa's original proposal.

Alcoa's willingness to "consider value for your [Alcan's] shareholders beyond that reflected in our outstanding offer" was expressed in a letter from its chairman and chief executive officer Alain Belda to Richard Evans, president and chief executive officer of Alcan, that was filed with the Securities and Exchange Commission.

The offer came after Evans e-mailed Belda to say that Alcoa's offer had been considered by a committee of the board of directors. The company had concluded: "At this point we see no reason to engage in further discussions or correspondence."

Alcoa is offering to acquire Alcan for $58.60 in cash and 0.4108 of a share of Alcoa common stock for each outstanding common share of Alcan. The offer is slated to expire at 5 p.m. ET on July 10.

At the time it was made, May 7, the offer was valued at $33 billion.

Montreal-based Alcan is a materials company specializing in bauxite mining, alumina processing, primary metal smelting, power generation, aluminum fabrication, engineered solutions and specialty packaging.

Alcoa is a New York-based aluminum manufacturer.

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