Alumax Jabs Back At Kaiser

Alumax Inc. on Monday launched its anti-Kaiser Aluminum Corp. campaign, with presentations telling major shareholders and analysts why selling the company may not make sense.

Tom Hagley, Alumax director of investor relations, said the Georgia-based aluminum maker will meet privately with its largest investors and Wall Street analysts this week to discuss why Kaiser’s $2.2 billion to $2.5 billion takeover offer should be rejected.

Kaiser disclosed its offer last week after Alumax rejected the deal as “inadequate” and rife with problems.

However, Houston-based Kaiser is appealing to Alumax shareholders - some of whom own stock in both companies - to put pressure on Alumax to reconsider the deal.

Kaiser, Spokane’s largest manufacturing employer, said Monday in a statement, “We remain convinced that a combination of Kaiser and Alumax offers an exceptional opportunity to the shareholders. Alumax’s shareholders have a right to expect that the two companies will thoroughly explore the possibility of this transaction.”

Aluminum company stocks dropped Monday, moving the same direction as the rest of the market. Kaiser fell 75 cents to $14.25 per share, while Alumax closed down $1.25 to $36.875.

Kaiser is offering $40 to $45 per share for Alumax.

, DataTimes