Rio Tinto braced for aluminium bid battle

Rio Tinto, the world's second-largest mining group, is drawing up plans to gatecrash the $28bn (£14bn) hostile bid battle being fought between the North American miners Alcan and Alcoa, The Daily Telegraph can reveal. Rio Tinto, which is listed in London and Sydney, is understood to have engaged Credit Suisse and Deutsche Bank to advise it on a range of options, including a bid for Alcan. Another possibility is a bid for Alcoa although this is thought less likely. The appointment of the two banks comes after the hiring of Morgan Stanley, Rio's long-standing financial adviser, by the Canadian-based Alcan, which is trying to fend off the unwelcome approach from Alcoa. People close to the process said last night that Rio Tinto had asked Credit Suisse and Deutsche Bank to explore "strategic opportunities" in the mining sector, which is undergoing a round of global consolidation. Rio Tinto is thought to have already held tentative talks with Alcan's management about a counter-offer for the Canadian aluminium miner, which received the $28bn hostile bid from Alcoa, its US rival, at the beginning of May.