Aluminum Giants Clash: Alcoa Launches Hostile Takeover Bid

Strategic Insights -

Alcoa has launched a hostile takeover bid for rival Reynolds Metals, valuing the Richmond-based company at roughly $65 a share. This news follows a proposed merger between Canada's Alcan and Switzerland's Alusuisse-Lonza Group, and Pechiney SA of France, which would create an aluminum giant with revenues of over $21.5 billion. Meanwhile, China Airlines has placed a large order with Boeing and Airbus, worth upwards of $5.6 billion.

Key Takeaways:

  • Alcoa has launched a hostile takeover bid for Reynolds Metals, valuing the company at $65 a share.
  • Alcan is acquiring Alusuisse-Lonza Group and Pechiney SA of France in a $9.2 billion stock deal, creating an aluminum giant with revenues of over $21.5 billion.
  • China Airlines has ordered 18 cargo and passenger jets from Boeing and 11 new passenger jets from Airbus, totaling a purchase worth over $5.6 billion.
  • The U.S. government has filed documents with a federal court outlining its case against Microsoft, alleging the company used its Windows monopoly to harm Netscape.
  • Microsoft has filed its own documents opposing the U.S. government's allegations, arguing it does not have a monopoly and Netscape remains free to distribute its browser.
  • Procter & Gamble has acquired Iams, a leading pet food brand, in an all-cash deal valued at $2.3 billion.
  • The last full solar eclipse of the millennium had a negligible impact on global markets, with traders in Paris and London largely unaffected by the rare event.

Statistics:

  • Alcoa's hostile takeover bid for Reynolds Metals values the company at $65 a share.
  • The proposed merger between Alcan, Alusuisse-Lonza Group, and Pechiney SA of France would create an aluminum giant with revenues of over $21.5 billion.
  • China Airlines' order for Boeing and Airbus jets totals $5.6 billion.
  • The U.S. government's antitrust case against Microsoft has filed 770-page documents outlining its case.
  • Microsoft has filed 450-page documents opposing the U.S. government's allegations.
  • Procter & Gamble's acquisition of Iams is valued at $2.3 billion.

Sources:

  • NPR's Jack Speer report
  • NPR's John McChesney report
  • Emily Matthews, Research Analyst at a London brokerage firm (quoted in NPR's Jack Speer report)