London headquartered Rio Tinto Ltd (RTP) became another potential bidder for Canadian aluminum producer Alcan Inc, (AL, AL.TO) after news reports said it had hired Deutsche Bank to advise on a possible bid.
If Rio Tinto has joined the fray for Alcan, it may find itself pitted against its larger rival and the world's biggest miner, BHP Billiton Ltd, which also is thought to be interested in Alcan.
A Canadian press report last week said that BHP Billiton (BHPBF.PK, BHP, BBL) was negotiating with Alcan, after the Canadian aluminum producer and miner rejected a $US27 billion hostile takeover offer from New York-based rival Alcoa, (AA) saying it was in talks with unnamed other parties.
Analysts are of the opinion that though there is no confirmation as to whether BHP Billiton or Rio Tinto is interested in Alcan one of these rumors would become true. Names of CVRD, Anglo and Swiss-based Xstrata plc. and UK-based Anglo American plc is in circulation as some of the other bidders for the aluminum producer.
Australian aluminum producer Alumina Ltd will be watching the proceedings eagerly, with further speculation a bid might be forthcoming if Alcan is successfully taken over.Alumina owns 40% of Alcoa World Alumina and Chemicals (AWAC), the world's largest alumina business, with partner Alcoa owning the other 60%.
A Rio Tinto spokeswoman declined to comment on the reports.
RTP was up 4.87% or $13.56 and closed Friday regular trading session at $292.05. AL closed at $85.00 and AL.TO at C$91.65. BHP at $50.95 and BHPBF.PK at $23.13. AA closed Friday's regular trading session at $40.90and in after hours AA rose $0.20 and traded at $41.10.
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