Alcoa Inc on Monday extended its hostile offer for rival aluminum producer Alcan Inc until Aug. 10 and called itself "the natural partner" for the Canadian firm.
The cash-and-stock offer, worth some US$33 billion at the time of its announcement in early May, was set to expire yesterday.
US-based Alcoa has been pressing its offer with shareholders despite a firm "no" from Alcan management.
Alain Belda, Alcoa chairman and chief executive, said in a statement with the firm's quarterly earnings report that the offer was "compelling" and that Alcoa was "proceeding well with the regulatory approvals necessary to complete that transaction."
"We remain the natural partner for Alcan with the most substantial synergies, and an unparalleled commitment to Canada and Quebec," Belda said.
All other terms of Alcoa's offer remain unchanged, it said.
"This extension period will provide Alcan's shareholders with more time to consider our offer while we continue to pursue the various governmental and regulatory approvals necessary to complete the offer," said Belda.
Analysts have said that the hostile bid might encourage other offers for either company. Some reports said the world's largest mining company, Australia's BHP Billiton Ltd, was considering a tie-up with Alcan and some observers said Alcan might try to turn the tables by bidding for Alcoa.
Among the other companies that have been named as possible suitors were Brazil's CVRD and Anglo-Swiss company Xstrata.
BHP Billiton, meanwhile, declined to confirm or deny a report in the Times that it was in talks with private equity firms for a US$40 billion bid for aluminum producer Alcoa, Bloomberg reported.
BHP wants Alcoa's mining and refining assets and seeks a private equity partner to buy the packaging and manufacturing assets, the paper said, citing people it didn't identify. BHP favors private equity firm Blackstone Group LP as a partner, it said.
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