Rio Tinto Alcan loan called oversubscribed

Rio Tinto Group, the world's third- largest mining company, is closing the $40 billion (U.S.) loan offer to finance its purchase of Montreal's Alcan Inc. after banks pledged to underwrite 30 per cent more of the debt than they were offered. Rio Tinto's lenders marketed Europe's third-largest loan amid a slump in credit markets that has forced more than 50 companies worldwide to abandon or rework debt sales in the past two months. Deutsche Bank AG, Royal Bank of Scotland Group PLC, Credit Suisse Group and Société Générale SA agreed to underwrite the loan Aug. 2. Rio is buying Alcan to increase its aluminum production fourfold to meet forecast demand for the lightweight metal. The deal will propel Rio past Russia's United Co. Rusal as the world's biggest aluminum producer.