Alcan sale generating hot debate

With the deadline for Alcoa Inc.'s offer for Alcan Inc. less than three weeks away, the rumour mill is working overtime.

Yesterday, Australia's Sydney Morning Herald reported that Alcan has given access to a data room to both BHP Billiton Ltd. and Rio Tinto Group, two mining companies considered potential counter-bidders for the Montreal-based aluminum producer. They could thus have access to information not in the public domain.

Alcan would neither confirm nor deny the report.

On Monday, the Times of London said BHP Billiton is reviving plans to take a run at Alcoa, the world's second-largest aluminum producer. (Alcan is third).

U.S.-based Alcoa's $27.7-billion takeover offer for Alcan has been deemed inadequate by Alcan management, which is recommending shareholder rejection.

Unless extended, the Alcoa offer of $58.60 U.S. in cash and 0.4108 Alcoa shares for every common share of Alcan is due to expire at 5 p.m. on July 10.

Alcan shares slipped 83 cents to close at $88.50 yesterday on the Toronto Stock Exchange. Alcoa shed $1.33 to end the day at $40.25 U.S on the New York Stock Exchange.