Alcan Inc., seeking to fend off a $27.7 billion hostile bid from Alcoa Inc., didn't confirm or deny a report in the Sydney Morning Herald that it had given BHP Billiton Ltd. and Rio Tinto Group access to financial data.
BHP and Rio, the world's largest and third-largest mining companies, are considered potential counter bidders to Alcoa, the world's second-biggest aluminum maker, the newspaper said without saying where it got the information. BHP and Rio also declined to comment on the report.
Alcan rejected New York-based Alcoa's offer in May and an executive said last week it was considering options that may include working with Melbourne-based BHP to fight off the bid. Alcoa expects to make $1 billion in savings in three years by buying Montreal-based Alcan, the third-largest aluminum maker.
"Alcoa, as a pure aluminum play, may be able to pay a higher price since it could get more synergy and cost savings than say BHP and Rio, which are more diversified," said Gavin Wendt, an analyst at Fat Prophets in Sydney. "The assets can be attractive."
Shares of BHP fell 37 cents, or 1.1 percent, to A$34.55 on the Australian Stock Exchange at the 4:10 p.m. close in Sydney. Shares of London-based Rio dropped 66 cents, or 0.7 percent, to A$100.49.
Buying Alcan will give the acquirer 3.5 million tons of aluminum output a year, low-cost power generation and projects in countries from Australia to Iceland. A five-year rally in metal prices has fueled $98 billion of takeover bids in the mining and metals industry this year.
"I can't comment on rumors," Anik Michaud, an Alcan spokeswoman, said over the phone from Montreal. "I'm not confirming or denying."
Emma Meade, a spokeswoman for BHP Billiton, said the company doesn't comment on rumors or speculation. Ian Head, a spokesman for Rio Tinto, also declined to comment.
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