Rio Tinto likely to bid for Alcan, says report

28 May 2007

Mumbai: London-based Rio Tinto Ltd is eying a possible acquisition of Canadian aluminum producer Alcan Inc and has hired Deutsche Bank to advise it on a possible bid, the Sydney Morning Herald reported.

Rio Tinto is the latest mining house to join the race after Alcan rejected a $28.4 billion bid by Alcoa.

Other potential bidder include BHP Billiton Ltd., United Company Rusal, Anglo American and Xstrata Plc.

Rio Tinto is likely to be pitted against larger rival and the world''s biggest miner, BHP Billiton Ltd, which also is reported to be interested in Alcan.

An Alcan-Rio link up would create the world''s largest aluminum company.

Analysts say that Rio may not opt to retain Alcan''s downstream aluminum rolling and packaging arms, which it could sell for more than $8 billion and avoid the possibly of having to shelve over $30 billion for Alcan.