Alcoa said it would seek the support of Reynolds shareholders to replace the directors, redeem the company's "poison pill" anti-takeover defence, remove other impediments to a takeover and begin a $65-a-share cash tender offer this week for all outstanding Reynolds shares.
Pittsburgh-based Alcoa said it plans to file for US regulatory approval this week. Alcoa has said it believes an acquisition of Reynolds would not be anti-competitive due to the "global nature of the metals marketplace" and the current consolidation in the industry.
Alcoa made public its offer last week hoping Reynolds would negotiate a friendly deal, shortly after Canada's Alcan, the second-largest aluminium company, unveiled plans to merge with France's Pechiney and Alusuisse- Lonza Holding of Switzerland to create a company that would eclipse Alcoa's revenue. A successful purchase of Reynolds would allow Alcoa to retain its top spot.
Reynolds said yesterday it would explore all alternatives to increase shareholder value, including a sale of the company. Reynolds has reportedly received an offer at an unspecified price from Michigan Avenue Partners, a Chicago-based buyout firm that purchased a manufacturing facility from Reynolds last year.