Rio Tinto begins $38.1 billion offer for Alcan

By Lisa Kerner

Charlotte, N.C., July 24 - Rio Tinto plc said its indirect wholly owned subsidiary Rio Tinto Canada Holding Inc. began its offer for Alcan Inc.

The company is mailing its offer and take-over bid circular to Alcan shareholders.

As previously reported, on July 12, Rio Tinto offered to acquire Alcan for $101 per share in an all-cash transaction valued at $38.1 billion. Alcoa Inc. withdrew its offer for Alcan as a result. Alcan had rejected the New York-based aluminum manufacturer's offer to acquire the company in a cash and stock deal valued at $33 billion.

Rio Tinto's offer is open until 6 p.m. ET on Sept. 24. The transaction is slated to close in the fourth quarter.

The offer is conditioned on the acceptance of not less than 66 2/3% of Alcan shares on a fully diluted basis.

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.

Rio Tinto is a mining group based in London.

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