Rio Tinto said to have hired bankers for Alcan bid

Rio Tinto has hired Credit Suisse and Deutsche Bank to advise on whether it should make a run at buying Canadian aluminum producer Alcan, according to a published report on Friday. The Anglo-Australian metals giant has turned to those banks for advice after long-standing adviser Morgan Stanley was hired by Alcan,the aluminum producer fending off a $27 billion offer from Alcoa,according to the Daily Telegraph, a British newspaper. The newspaper reported that Rio Tinto and Alcan were thought to have engaged in preliminary talks; Alcan has previously admitted having talks with other companies. A spokesman for Rio Tinto declined to comment specifically on the report. He said the company is always on the look out for opportunities but has a strong pipeline for organic growth. Alcan in late June spurned a series of overtures by Alcoa to get a closer look at the Canadian firm's books -- despite Alcoa's suggestion that it would be willing to offer more. Both Rio and BHP Billiton have been linked as possible white knights for Alcan, the producer that has admitted it's willing to turn the tables and mount its own hostile bid for Alcoa. Xstrata, Anglo American and Companhia Vale do Rio Doce also could get involved, analysts say. The newspaper, without identifying sources, said Rio Tinto also wants the banks to study the less-likely possibility of mounting a bid for Alcoa. U.S.-listed shares of Rio Tinto shed 1.2% to $320.68 in midmorning trades.