Alcoa Lines Up Financing for Alcan Bid — but Is It Too Late?

Alcoasaid Tuesday that it had signed for a $30 billion credit facility that would help it pay for Alcan shares. However, it may be too late: The Canadian Press reported late Tuesday that Alcan has begun negotiating with Rio Tinto over a possible merger. Though Alcoa’s bid now has financing commitments from Citigroup and Goldman Sachs, Alcan has consistently rejected the American aluminum producer’s overtures. In a filing with securities regulators, Alcan said it “has undertaken negotiations concerning potential strategic transactions and alternatives to the Alcoa offer.” An Alcan spokeswoman told The Canadian Press that the company is now negotiating with more than one party about a possible alternative to Alcoa’s cash-and-stock offer. She said discussions have “evolved,” and explained that the shift in disclosure with United States regulators was made for legal reasons.