Alcoa Inc. launched a hostile $27 billion bid for Canadian aluminum rival Alcan Inc.

Alcoa Inc., seeking to keep pace with growing Russian rival Rusal, launched a hostile $27 billion bid for Canadian aluminum rival Alcan Inc. on Monday, after failing in almost two years of private talks to reach a negotiated deal. Alcan's U.S. shares rose 34.5 percent, well above the offered price, suggesting investors think the bidding could go higher. Alcoa shares gained 8.3 percent.

  Alcoa said the proposed cash-and-stock deal would create a premier diversified global aluminum company which could grow faster than the two companies could on their own. I know from almost two years of private discussions with Alcan that they also see the strategic logic behind this combination," said Alain Belda, Alcoa's chairman and CEO.

     Alcoa said in announcing the offer that the companies' talks had reached the board level last fall. The company plans to begin its offer on Tuesday. The combined company, with 188,000 employees in 67 countries, would have had revenue last year of $54 billion and earnings before interest, taxes, depreciation and amortization of $9.5 billion. The combined company's alumina capacity would be about 21.5 million metric tonnes, and its aluminum capacity would be approximately 7.8 million metric tonnes. Alumina is used to make aluminum. A metric tonne is about 2,204.6 pounds.

Until recently both companies were the world's top two producers of aluminum, but they now lag behind Rusal of Moscow. Rusal, its rival Sual and Swiss-based commodities trader Glencore International AG completed the combination of their assets at the end of March, creating United Company Rusal and surpassing Alcoa as the world's largest aluminum producer.

The Alcan deal would vault Alcoa past Rusal as in aluminum production. New York-based Alcoa, which plans to maintain dual headquarters in Montreal and New York, sees annual pretax cost savings of about $1 billion from its proposed combination with Alcan in the third year after the deal closes. Alcan has a big presence in the French-speaking province of Quebec and approval could be difficult because of nationalist sentiment there.

The transaction is subject to review by antitrust authorities in the United States, Canada, the European Union, Australia and Brazil, as well as foreign investment clearance in Canada, France and Australia. Burns said Alcoa won't have problems in the U.S. where there won't be many job losses. He also said Alcoa "has really gone out of their way to assuage Canadian fears before they've even been risen."

      At its annual meeting last month, Alcan CEO Dick Evans said the company will be put at a serious disadvantage by a controversial measure in Canada's recently released federal budget that scraps a tax deduction for companies investing abroad. Evans warned the initiative could make Alcan more susceptible to a foreign takeover. Alcan had been cited as a potential takeover target by Rio Tinto PLC of London and Companhia Vale do Rio Doce of Brazil.

   Alcoa is offering a combination of cash and stock that it said was worth $73.25 for each Alcan share, a 20 percent premium to Alcan's closing price Friday of $61.03 and a 32 percent premium to Alcan's average closing price over the last 30 trading days. With about 367 million shares outstanding, the offer values Alcan at nearly $27 billion. Alcoa said debt being assumed would boost the total value of the deal to $33 billion. The bid includes $58.60 a share in cash and 0.4108 of an Alcoa share for each share of Alcan. Alcan's U.S. shares rose $21.08 to $82.11 on Monday -- above the offered price -- while Alcoa shares gained $2.97 to $38.63.

 of the company.

It was learned in the interview that how to expand the import of glassware was one of the main tasks. Liuling told the reporter that the chamber of commerce is doing market survey about the actual demand of imported glassware and whether the product varieties and grades of world leading producers are suitable for Chinese market, and meanwhile making an effort for importers in china to promote their products.

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