Alcoa breaks off WMC bid

Aluminum giant Alcoa (AA-N), rebuffed in a takeover bid for diversified Australian miner WMC (WMC-N), says it will “turn its attention to other growth initiatives elsewhere.”

Frustrated by WMC’s proposal to divide itself into aluminum and non-aluminum companies, and unwilling to match the value placed on WMC by an independent valuer, Alcoa released a letter from its chairman, Alain Belda, to WMC’s chief executive, Hugh Morgan. In it, Belda insisted his company had consistently offered to take over WMC for about A$10 per share, and took issue with WMC’s description of the Alcoa bid as “opportunistic.”

WMC fired back with a prepared statement that Alcoa’s offer could not be reconciled with the independent valuation of A$11.18 to A$12.91 that WMC had obtained from consulting firm Grant Samuel.