Alcoa rises on BHP Billiton takeover talk

Wednesday, Jun 20, 2007
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Alcoa's share price rose in Frankfurt yesterday after the London-based Times said BHP Billiton might consider a $40 billion (R284 billion) takeover of the US aluminium maker.

The stock increased 3.3 percent to E31.80 (R303) by 9.21am in Frankfurt. BHP shares in Frankfurt gained 5c to E21.74.

BHP Billiton, the world's largest mining company, had previously considered making an offer for Alcoa in February, the newspaper said, but chief executive Chip Goodyear preferred instead to return cash to shareholders.

BHP was in the early stages of considering an offer and had not made an approach to Alcoa, the newspaper reported without saying where it got the information.

Marius Kloppers, who will succeed Goodyear on October 1, might revive plans for an approach for Alcoa after Goodyear shelved a possible bid in February, the newspaper said.

"We don't comment on market rumour," said BHP Billiton spokesperson Illtud Harri.

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