Rio Tinto plans to counter Alcoa''s $28.6 billion bid for Alcan, says report

Mumbai: 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.

Rio 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.

Alcan 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.

If 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.

Earlier 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.

Alcoa, 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.