Rio Tinto makes a recommended all cash offer for Alcan

On July 12, 2007, Alcan announced that it entered into a definitive agreement for Alcan to be acquired by Rio Tinto.  The all-cash transaction is valued at US$38.1 billion. Alcan's Board of Directors is recommending that shareholders vote to approve the transaction.

Under the terms of the transaction, Rio Tinto will acquire all of the outstanding common shares of Alcan for US $101 per share. Financing for the transaction is fully committed through a syndicate of banks providing funding to the purchaser.

The offer is subject to customary regulatory and antitrust approvals in the United States, Canada, the European Union and Australia, and the absence of material adverse changes or effects. It is expected to close in the fourth quarter of 2007.

Goodmans LLP is Canadian counsel to the syndicate of lenders, which includes The Royal Bank of Scotland, Deutsche Bank, Credit Suisse, and Société Générale.