Alcoa's offer for Reynolds Metals countered by Chicago partnership

Manufacturing

August 14, 1999|By BLOOMBERG NEWS

CHICAGO -- Reynolds Metals Co., North America's No. 3 aluminum producer, got an all-cash takeover offer from investment firm Michigan Avenue Partners, rivaling a half-cash, half-stock offer from Alcoa Inc. in an effort to keep Reynolds independent, the investment firm said yesterday.

The value of the offer wasn't disclosed, though Chicago-based Michigan Avenue Partners said its offer is higher than Alcoa's, which is equivalent to $65 a share, or $5.6 billion including assumed debt. Reynolds shares rose $3 to $69.375.

Closely held Michigan Avenue Partners has purchased about $1 billion of aluminum assets in the past 18 months, including a Reynolds plant in McCook, Ill. It had gross revenue of $1.7 billion last year, Chairman Michael Lynch said. He said his firm also agreed this week to buy Wells Aluminum Corp. of Baltimore, a closely held maker of processed-aluminum products.

Pub Date: 8/14/99

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