Rio Tinto's Albanese Says Others May Bid for Alcan

Rio Tinto Group Chief Executive Officer Tom Albanese, who last week agreed to buy Alcan Inc. for $38.1 billion, said other companies may be preparing rival offers for the Canadian aluminum producer. "It would be naïve to think that people weren't running the numbers themselves," Albanese said today in a phone interview from New York. "We are quite confident, but I would not be surprised if others are putting pen to paper," he said in earlier e-mailed comments. He declined to say who might bid. Rio's $101 per share offer for Montreal-based Alcan would be the largest ever takeover in the mining industry and create the world's largest aluminum producer, surpassing Russia's United Co. Rusal. Any rival bid would need to overcome a breakup fee of $1.05 billion, which Rio would collect if Alcan is acquired by someone else. London-based Rio topped a hostile $27.7 billion cash-and- stock bid from Alcoa Inc., which subsequently withdrew its offer. Brazil's Cia. Vale do Rio Doce said July 12 that it hasn't ruled out bidding for Alcan and that the company is always "studying opportunities." Vale, based in Rio de Janeiro, said it isn't holding talks with Alcan. Anik Michaud, a spokeswoman with Alcan, wasn't immediately available to comment. Rio Tinto will appoint a chief financial officer for the new aluminum business from among its own employees, Albanese said today. Alcan finance director Michael Hanley will be "very important" in the integration, Albanese said. Alcan Chairman Yves Fortier and Chief Executive Dick Evans will both join the Rio Tinto board, as will another non- executive member of Alcan's board who has yet to be named.