Alcan might consider new Alcoa bid, or make its own offer

Canadian aluminium giant Alcan said on Friday it "would consider" an improved takeover bid from US rival Alcoa but is weighing other options including its own hostile bid for Alcoa.

In a regulatory filing two days after rejecting a 33-billion-dollar offer, Alcan explained its refusal and said it was keeping its options open.

But the filing did not mention any other companies, despite reports that Alcan was weighing a tie-up with the world's largest mining company, Australia's BHP Billiton.

"If Alcoa brought forward a new proposal that made sense for our shareholders, we would consider it, but certainly not under the currently proposed terms and price," the document said.

"Alcan's management and board are continuously evaluating all options in the interests of shareholder value. That said, we are convinced that this proposed Alcoa-led acquisition of Alcan is not the right choice for Alcan shareholders and employees."

The document added that Alcan management had rejected two "informal proposals" over the past two years.

It added that Alcoa's proposals failed to adequately compensate shareholders and failed to address the potential regulatory hurdles of the deal which would create the world's biggest aluminium maker.

Alcan added that it had not ruled out a so-called "Pac-Man" strategy in which it would make its own hostile bid and try to acquire Alcoa.

"Alcan's management and board are continuously evaluating all options in the interests of shareholder value, employees and the future of the company, given the rapidly evolving industry environment," the document said. "At this point, we have not foreclosed any options."

The statement added that Alcan "is in discussions with third parties but there is nothing more to disclose."

US-based Alcoa on Wednesday reaffirmed its hostile bid for Canadian rival Alcan, saying its offer was "full and fair" and that it would press its case with shareholders.

On Tuesday, Alcan's board asked shareholders to reject the unsolicited offer from Alcoa saying it "does not adequately reflect the value of Alcan's extremely attractive assets" and has other problems.

Among the other companies that have been named as possible suitors for Alcan are Brazil's CVRD and Anglo-Swiss company Xstrata.

Record metals prices have unleashed a wave of consolidation in the metals sector, as companies seek to snap each other up to benefit from the profits.