Rio Tinto set to pounce on alumina giant

Australian resources giant Rio Tinto is set to thwart North American miner Alcoa's hostile takeover bid for aluminium producer Alcan by putting a counter offer on the table. Rio Tinto has hired advisers from Credit Suisse and Deutsche Bank to discuss a rival bid for Canadian-based Alcan, The Daily Telegraph in London reported. It was also possible Rio Tinto could consider mounting a bid for US-based Alcoa, the newspaper said, but added that such an option was less likely. Quoting "people close to the process", the newspaper said Rio Tinto had asked the two investment banks it hired to "explore strategic opportunities in the mining sector". "Rio Tinto is thought to have already had tentative talks with Alcan's management about a counter-offer for the Canadian aluminium miner, which received the hostile $US28 billion ($A32.8 billion) bid from Alcoa, its US rival, at the beginning of May," the paper said. Rio Tinto is likely to find Alcan an attractive buy because of its valuable bauxite and aluminium mining operations. Reports earlier this week suggested Alcoa could raise its offer, but Alcan had already knocked back the predator's request for talks. Alcoa chief executive Alain Belda last month said Alcoa would welcome the chance to visit an Alcan data room, if one existed. Suggestions that Rio Tinto could enter a bidding war for Alcan come amid speculation that fellow Australian resource giant BHP Billiton Ltd is also interested in looking at Alcan's books. Alcoa's offer is due to expire on July 10 but the company has said it is likely to extend the deadline.