Talk of Alcan Pac-Man defense won’t quit

Talk of Alcan, which is the subject of a more than $28 billion hostile takeover bid by Alcoa, pulling a Pac-Man move and trying to take over Alcoa instead, just won’t quit.

In part, the notion is being perpetuated by Alcan itself, which suggested such a move was on its list of possibile defense when it rejected the Alcoa offer last month. Again on Wednesday, a company executive said the move, which is named after the video game in which the Pac-Man being pursued by ghosts turns and gobbles them up instead, is one of the options it is considering, according to news reports. A company spokesman would not confirm the reports.

Bear Stearns also got in on the act on Wednesday with a research note in which it said that it believes Alcan could make a stock and cash counteroffer for Alcoa at $50 per share.

The firm also downgraded Alcan to a “peer perform” rating. The company’s stock is trading more than 10 percent above the current value of the offer. A white knight bid might be in the offing, Bear Stearns said, but it questioned whether there would be the same level of synergies. Possible buyers Bear cited are the ones that have turned up across multiple news outlets - BHP Billiton, Rio Tinto, CVRD, Xstrata and Anglo American.