Moody's to review Alcan for upgrade

Moody's Investors Service said Friday it changed its review of the Baa1 senior unsecured ratings and Prime-2 short-term ratings of aluminum producer Alcan Inc. due to Rio Tinto's acquisition offer. The agency will now review the ratings for a possible upgrade instead of a possible downgrade. Rio Tinto on Thursday outbid Alcoa Inc. with a $38.1 billion, or $101 per share, cash offer for Alcan. Alcan's board had already rejected Alcoa's prior $27.5 billion cash and stock offer. Alcoa formally removed the bid after the closing bell. Moody's said its review will look at Alcan's strategic position in the Rio Tinto group and the combined bauxite, alumina and aluminum operations, among other factors. Shares of Alcan fell 85 cents to $97.60 in afternoon trading.