Any opinions on this potential takeover? Today's closing price of $90 CAD about 10% higher than the actual offer. Should existing Alcan shareholders sell?
Alcoa / Alcan merger
- Thread starter Joey Jeremiah
- Start date
I'm a shareholder.
Bought in about 2 years ago at 42 or so.
I had heard the rumours that they were a takeover target and after watching Inco get swallowed up and Dofasco, I figured I'd hang on.
This morning, I opened the globe and mail's website and LOOKIE LOOKIE.
I sold HALF my postion today.
I figure that I will wait and see what happens. If another company takes up the chase or not. If it follows INCO, their price will probably drop into the high 70's, followed by a rebound even higher than now. Especially if another interested party comes forth.
It's actually sad to see these great Canadian companies getting taken over. Quebec has a huge stake in Alcan, however, not even the Quebec Gov't has enough cash to stop this.
Alcan is gone. The only question is to whom?
Now if only NORTEL would get taken over for christ's sake....
Bought in about 2 years ago at 42 or so.
I had heard the rumours that they were a takeover target and after watching Inco get swallowed up and Dofasco, I figured I'd hang on.
This morning, I opened the globe and mail's website and LOOKIE LOOKIE.
I sold HALF my postion today.
I figure that I will wait and see what happens. If another company takes up the chase or not. If it follows INCO, their price will probably drop into the high 70's, followed by a rebound even higher than now. Especially if another interested party comes forth.
It's actually sad to see these great Canadian companies getting taken over. Quebec has a huge stake in Alcan, however, not even the Quebec Gov't has enough cash to stop this.
Alcan is gone. The only question is to whom?
Now if only NORTEL would get taken over for christ's sake....
Captain Kirk, I am in the same boat as you, though I didn't buy in quite as low as $42 like yourself. Anyhow, I sold it all today! I figured I'd re-invest it all on pooning 
Apparently there have been commitments made by Alcoa to BC & Quebec regarding jobs & investmentjames t kirk said:
Alcan bailed on Canada years ago, when they set up their head office in Atlanta, to make it look like they were an "American" company. Went after the American market, by promoting aluminum wire because it was cheaper and lighter than copper. After they couldn't compete here in Canada with 2 and 3 conductor copper house wire, and lost the Ontario Hydro contract, they started to feed Canadian plants with work from the States, then bailed and kept it south of the border. They have closed several locations in Canada in the past while bitching about profitability, and efficiency.
Alcan was owned by Alcoa originally, till they split 100% in the 50s, and now 50 years later, get gobbled up. France's Alcatel was looking at eating them too.
Made a lot of products, but couldn't maintain a sizable market share, or profit margin, and phased out those divisions.
Once again, the big get bigger, so I guess if you can't run with the big dogs, stay on the porch.
I should have kept my shares, but dumped them mid 90s
Alcan was owned by Alcoa originally, till they split 100% in the 50s, and now 50 years later, get gobbled up. France's Alcatel was looking at eating them too.
Made a lot of products, but couldn't maintain a sizable market share, or profit margin, and phased out those divisions.
Once again, the big get bigger, so I guess if you can't run with the big dogs, stay on the porch.
I should have kept my shares, but dumped them mid 90s
pussylicker said:
Aluminum wire is making a comeback in industry & in housing!!.. Aluminum is much cheaper than copper.. the price for copper keeps going up, creating an increased demand for aluminum, also driving up the price of aluminum
Apparently in most new homes, the main wires coming into the house are aluminum, as are the wires for the stove and dryer
In another time I worked with aluminum and cast it for your pleasure and personal use. Aloca was the largest corp selling it. Now it is 20 odd yes later and they are buying the competors
