Rio Tinto, the world''s second-biggest mining company,
is considering a counter offer to Alcoa Inc.''s $28.6-billion
hostile bid for Alcan Inc., reports quoting sources
close to the development said.
has asked investment banks Credit Suisse and Deutsche
Bank to advise it on a range of options, including a
bid for Alcan and also a possible counter bid for Alcoa,
though the bid actually materializing looked less likely.
is the world''s third-largest manufacturer of primary
aluminum, behind Alcoa and Russia''s UC RUSAL and an
Alcan-Rio combination would overtake RUSAL.
Rio buys Alcan, it would have access to two of the world''s
largest sources of bauxite - Rio ''s existing Weipa deposit
and Alcan''s Gove deposit, both in Australia.
this week, Rio had announced plans to invest $1.8 billion
in expanding its alumina refining operations, in which
case, analysts pointed out, it would not bid for Alcan.
meanwhile, said the antitrust investigators of the US
department of justice had sought additional information
regarding its offer for Alcan. The company said it had
a detailed road map to resolve competition issues through
targeted divestitures and was looking to obtain approval
by the end of this year.
continue to believe that a combination of Alcoa and
Alcan makes strong strategic sense," Alcoa chief
executive Alain Belda said.
made its bid on 7 May, after the collapse of two years
of merger talks with Alcan. Alcan, meanwhile has others
possible suitors, including BHP Billiton Ltd. Plc.,
Norsk Hydro ASA, Companhia Vale do Rio Doce, RUSAL,
Anglo American and Xstrata Plc. are also viewed by analysts
as potential bidders for Alcan.
which split off from Alcoa in the 1920s because of antitrust
regulations, is expected to unveil its own strategy
in the coming weeks, which will indicate whether it
wants to remain independent, find another suitor or
reach a friendly deal with Alcoa.