ALCAN <AL> MAY MAKE SHARE ISSUES
Alcan Aluminium Ltd said it may issue
up to two mln first preferred shares in addition to an
unlimited number of additional common shares and an unlimited
number of additional preference shares at any time after its
proposed reorganization.
    In a proxy statement, the company said shareholders are to
vote on the reorganization, which would result in Alcan's
wholly-owned Aluminum Co of Canada Ltd unit replacing Alcan
Aluminium as the group's parent company, at the April 23 annual
meeting. The new company will keep the Alcan Aluminium Ltd
name.
    Alcan said it has no plans to immediately issue any of the
additional shares.
    The company has said it is undertaking the reorganization
mainly to streamline management and give Alcan a stronger and
more stable financing base by making the new Alcan a major
operating company as well as a holding and management company.
    "In an increasingly global capital market, this new
structure should also provide for greater flexibility in
financing the Alcan group," the company said.
    Alcan's current only outstanding securities are common
shares while the new company would have outstanding securities
of common, preferred and preference shares, and its debt.
    Each shareholder would automatically become a shareholder
in the new company without exchanging share certificates.
    Alcan later said it has a provision identical to the one
detailed in the proxy statement allowing for the issue of
preferred, common and preference shares, in its existing
corporate structure.
 Reuter
