BHP Says Rio’s Alcan Valuation Is `Voodoo Economics'

BHP Billiton's Chief Commercial Officer Alberto Calderon said the valuation by Rio Tinto that its Alcan aluminum unit is worth $33 billion was ``voodoo economics', the Australia Financial Review reported. The paper said the valuation is on the basis of aluminum prices remaining at current high levels until 2015 and production increment by 350,000 tonnes a year. Calderon said that last year Rio Tinto paid too much with $38 billion for Alcan, and BHP has made an appeal to the U.K. Takeover Panel on the growth forecasting by Rio. BHP is seeking more than the 71% increase that Vale made for its iron ore’s contract price, and the future shipments will be sold under “another system”.