Editorial Contact: Bonita A. Cersosimo
1 412 553 4462
Investor Relations: Charles D. McLane
Randall J. Killeen
1 412 553 2231
ALCOA INCREASES HOWMET TENDER OFFER PRICE TO $21 PER SHARE
PITTSBURGH, Pa., June 1, 2000 -- Alcoa Inc. announced today that it
reached an agreement in principle with the Independent Directors Committee
of Howmet International Inc. with respect to Alcoa's previously announced
proposed acquisition of all of the publicly held shares of Howmet. Under
the agreement, which is subject to the execution of a definitive merger
agreement and the approval of the Howmet Board of Directors, Alcoa will
acquire all the publicly held Howmet shares for $21 per share in cash.
Alcoa said it anticipates that a definitive merger agreement could be
entered into as early as tomorrow.
Alcoa said it increased the offer price of its pending cash tender
offer for all of the publicly held Howmet shares to $21 in cash per share
from $20 per share. Accordingly, Alcoa extended the expiration date of the
Howmet tender offer to 12:00 Midnight, Wednesday, June 14, 2000, Eastern
Daylight Savings Time. Alcoa also said that there will be a subsequent
offering period of at least three business days following the June 14
expiration. Alcoa expects to mail a supplement to its Offer to Purchase,
dated April 18, 2000, promptly following execution of a definitive
agreement with Howmet. Alcoa also said an agreement in principle had been
reached to settle all class action litigation against the Howmet directors
based on the increase in the deal price to $21 per share.
As of the close of business on June 1, 2000, the number of shares of
Howmet common stock that had been validly tendered was 732,892, including
guaranteed deliveries.
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Alcoa (NYSE: AA)
Howmet International Inc. (NYSE: HWM)
