Alcan rejected on Tuesday an unsolicited $27.6 billion takeover offer from rival aluminum producer Alcoa, but the Canadian company said it was in talks with third parties.
Alcan said shareholders should not tender shares to the Alcoa offer, which it said does not adequately reflect the value of Alcan's assets, strategic capabilities and growth prospects.
"Furthermore, it is clear to us that Alcan and Alcoa have fundamentally different approaches and track records in creating shareholder value. We are convinced that the proposed Alcoa-led acquisition of Alcan is not the right choice for our shareholders," Alcan's chairman, Yves Fortier, said in a release.
Alcan's shares closed at $81.03 on the New York Stock Exchange on Tuesday, well above Alcoa's offer of $58.60 a share plus 0.4108 of its shares, which values Alcan at $75 a share.
Both Alcan and Alcoa's shares rose in after-hours New York trading. Alcan was up about 3% at at $83.40, while Alcoa was up 2.7% at $40.
Speaking to Reuters shortly after the announcement, Alcan chief executive Dick Evans said his company was in discussions with other parties, but would not say which ones. "Our board has asked us to evaluate all alternatives, both internal and external," he said.