Alcan has announced:
they have reached an agreement for Rio Tinto to make an offer to acquire all of Alcan’s outstanding common shares for US$101 per common share in a recommended, all cash transaction.
There is no mention of the preferred shares ( AL.PR.E & AL.PR.F ) or whether Rio Tinto will take the necessary steps to ensure that the dividends thereon are considered “eligible dividends”.
The preferreds are currently on “Credit Watch – Developing” by DBRS.
Update: DBRS is maintaining the “Credit Watch – Developing”:
DBRS is maintaining the ratings of Alcan Inc. (Alcan) Under Review with Developing Implications following Rio Tinto Plc’s (Rio) announcement today to acquire Alcan in a friendly takeover for $38.1 billion.
…
In the event that this transaction is completed based on the current structure of Rio’s offer, DBRS would expect Rio’s rating to flow through to Alcan’s rating. Currently, Rio’s rating is AA (low), Under Review with Negative Implications. DBRS notes that other mining conglomerates may yet elect to make a higher bid for Alcan.
Note that Alcan’s bond rating is A(low), so unless Rio was severely downgraded, a flowthrough would improve credit quality.
Update: Alcoa’s offer has been withdrawn, amid speculation that it has become a target itself.
This entry was posted on Thursday, July 12th, 2007 at 12:08 pm and is filed under Issue Comments. You can follow any responses to this entry through the RSS 2.0 feed.
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Rio Tinto Makes Friendly Bid for Alcan (AL.PR.E, AL.PR.F)
Alcan has announced:
There is no mention of the preferred shares ( AL.PR.E & AL.PR.F ) or whether Rio Tinto will take the necessary steps to ensure that the dividends thereon are considered “eligible dividends”.
The preferreds are currently on “Credit Watch – Developing” by DBRS.
Update: DBRS is maintaining the “Credit Watch – Developing”:
Note that Alcan’s bond rating is A(low), so unless Rio was severely downgraded, a flowthrough would improve credit quality.
Update: Alcoa’s offer has been withdrawn, amid speculation that it has become a target itself.
This entry was posted on Thursday, July 12th, 2007 at 12:08 pm and is filed under Issue Comments. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.