Rio Tinto won't say if plans to join the fray for Alcan

Rio Tinto Ltd won't say whether it is interested in Alcan Inc, amid speculation it could be planning a bid for the Canadian aluminium producer.

Alcan last week rejected a $33.03 billion takeover offer from US rival Alcoa, saying it was in talks with other parties.

Since then, equity markets have been awash with rumours that BHP Billiton Ltd could make a bid, and now Rio Tinto Ltd.

A Rio Tinto spokeswoman today declined to comment on whether it had such plans or if it had retained Deutsche Bank as an advisor on a possible transaction.

Analysts played down the talk, pointing to a lack of synergies.

"It is continued speculation, but ultimately one of these rumours is going to be true," ABM Amro analyst Rob Clifford said.

"I think it is less likely (Rio being interested in Alcan) than some of the other bidders - CVRD, Anglo and Xstrata."

Companhia Vale do Rio Doce, or CVRD, the world's second biggest mining company, Swiss-based Xstrata Plc and UK-based Anglo American plc all have been pegged as potential predators for the aluminium producer.

Talk linking Rio Tinto, BHP Billiton and Alcan has has been circulating since February, with both mining giants looking cashed up as they ride a worldwide commodities boom.

BHP Billiton last week also declined to comment.

Australian aluminium producer Alumina Ltd will be watching the proceedings with interest, given its link to would be predator Alcoa.

Alumina owns 40 per cent of Alcoa World Alumina and Chemicals, the world's largest alumina business, with partner Alcoa owning the other 60 per cent.

When details of Alcoa's bid for Alcan surfaced, global credit ratings agency Standard & Poor's placed Alumina's long-term credit rating placed on negative watch and said it expected Alumina to be involved in purchasing new AWAC assets.

After posting a 62 per cent lift in annual net profit to $511 million for 2006, Alumina's chairman Donald Morley said at the company's annual general meeting this month that demand for the metals was robust and that it expects prices to remain firm.

Rio Tinto shares ended up $1.43 at $94.15, BHP Billiton rose 47 cents cent to $31.13 and Alumina rose 20 cents $7.78.