Friday, January 25, 2008

That’s (Alu)minimum value!

Expensive metal (and we’re not talking of gold here!) is the hot & melting topic for the season in Canada. Well, you’d want to believe it’s so at least at Alcan Inc., the Canadian aluminium giant, where the shareholders apparently hold a Tom Albanese, CEO, Rio Tinto & his dream of making a base metal...view that ‘what if it’s not gold they own? Atleast their aluminium is worth its weight in gold!’ Yes, they firmly believe so, for they wouldn’t otherwise brush aside Alcoa’s colossal $26.9 billion revised bid offer & ask for more… But then again, the obvious happened & the Alcan shareholders didn’t have to wait for long, for along came Rio Tinto, the world’s second largest mining behemoth with its all-cash $38.1 billion mighty offer at $101 per Alcan share. ‘Overvalued’ you think as compared to the previous bids it received from Alcoa? Our confident answer to that is – yes! Grossly overvalued!


For Complete IIPM Article, Click here

Source: IIPM Editorial, 2008

An IIPM and Management Guru Prof. Arindam Chaudhuri's Initiative
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