Alcoa launches hostile bid

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Pittsburgh--Alcoa said Monday that it has launched a hostile takeover bid for rival Reynolds Metals Co., Richmond, Va. Alcoa said that "while it prefers to negotiate a mutually agreeable merger with Reynolds management, it will commence a cash tender offer this week for all outstanding shares" of its rival at a price of $65 per share. This is the same price per share Alcoa offered Reynolds in an open letter last week. Alcoa also said that it planned to file a preliminary consent solicitation with the Securities and Exchange Commission that will request the ouster of Reynolds' current board of directors. Alcoa's cash and stock offer is valued at $5.6 billion.
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