Alcoa launches $33bn bid for Alcan

Canada-based Alcoa has launched a $33 billion hostile bid for US-based Alcan Inc.

The bid of $73.25 per share in cash and stock represents a 32% premium to Alcan's average closing price on the New York Stock Exchange over the last 30 trading days.

Alcoa's move follows nearly two years of merger discussions between the companies that failed to a yield an agreement.

"We are very disappointed that those efforts did not result in a negotiated transaction - a conclusion we would have strongly preferred," Alain Belda, chairman and CEO, Alcoa said in a statement.

The statement added that annual cost synergies are expected to be approximately $1 billion.

The combined company will have dual head offices in Montreal and New York.