Rio Tinto set to enter the fray for Alcan

Rio Tinto PLC is set to gatecrash Alcoa's 28 bln usd hostile takeover bid for Alcan, according to a report in The Daily Telegraph. The London- and Sydney-listed mining group is understood to have appointed Credit Suiise and Deutsche Bank to advise it on a number of options, including possible bid for Canada's Alcan, or a less-likely move for Alcoa. The newspaper cited people close to the process who said Rio Tinto had asked the banks to explore 'strategic opportunities' in the mining sector. Rio Tinto is already thought to have held talks with Alcan's management regarding a counter-offer following Alcoa's hostile approach. Alcan chief executive Dick Evans said earlier this week in a regulatory filing that the group was exploring other options, including 'ongoing discussions' with third parties. Alcan is also understood to have approached the world's largest miner BHP Billiton about a possible white-knight offer.