Alcan’s Board Recommends Shareholders Reject Alcoa’s Acquisition Offer

A copy of the Directors’ Circular, which sets forth in greater detail the board’s recommendation and the reasons therefor, is being mailed to all Alcan shareholders. These reasons include, but are not limited to, the following:
• “The Alcoa Offer fails to compensate Alcan Shareholders for the value of Alcan’s extremely attractive asset base, technology, strategic capabilities and growth prospects.”
• “The Alcoa Offer does not reflect an adequate premium for control of Alcan.”
• “Under Alcoa’s own analysis, the Alcoa Offer does not compensate Alcan Shareholders adequately for the capitalized value of Alcoa’s own estimates of achievable synergies.”
• “The consideration offered under the Alcoa Offer represents a discount to the current trading price of the Alcan Common Shares.”
• “The Alcoa Offer is highly conditional and is subject to significant risks and uncertainties, both as to timing and ultimate outcome.”
• “The value of the Alcoa Offer is uncertain and it will vary with the trading price of the Alcoa Shares.”
• “The Board and its Strategic Committee, together with Alcan’s management, are actively building upon existing strategies to develop a full set of highest-value initiatives as well as continuing to explore alternatives consistent with the best interests of Alcan Shareholders.”