Rio Tinto to acquire Alcan for $38 billion
New York: Mining company Rio Tinto Zinc has launched a recommended cash offer for Alcan, valuing the Canadian aluminium company at US$38.1 billion or $101 a share, beating an earlier hostile bid from Alcoa of the US.

The offer represents a 32.8 per cent premium to Alcoa's cash and shares offer for Alcan and is 65 per cent above the Canadian group's record closing price in May based on Thursday's closing price of $89.60.

The combined aluminium product group would be named Rio Tinto Alcan and would be a subsidiary of the larger Rio Tinto group. It will be the largest producer of bauxite, alumina and aluminium.

Dick Evans, the current Alcan chief executive, would run the newly formed group which would be based in Montreal.

The demand for alumina, the base metal which is turned into aluminium, is growing rapidly and outperforming other base metals like copper and iron ore. World demand for aluminium is forecast to grow at a compound rate of 6 per cent over the next four years as China continues to consume commodities at a voracious rate.

In addition to the acquisition Rio Tinto also launched a review of its operations which is expected to lead to the sale of Alcan's packaging business and other non-core operations.
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Boeing year orders behind Airbus'
New York: Boeing Co. said on Thursday its commercial plane orders for the year stood at 580, and were equal to last year's record-breaking performance, but trailed behind rival Airbus. Boeing launched its 787 Dreamliner on Sunday and said it had received 36 new orders in the past week -- 35 for 787s and one for a private 787 jumbo from an unnamed customer.

Boeing now has 677 firm orders for its lightweight, fuel-efficient 787, with Australia's Qantas Airways expected to order a further 20, according to remarks by the airline's chief executive at a Boeing event last week. Beoing's 787 is set to begin service in May and outsells Airbus' competing A350 XWB. But Airbus holds the edge in single-aisle planes. At the end of June, the European company had orders for 680 aircraft.
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News Corp to launch business news channel
Rupert Murdoch's News Corp has announced that its cable-TV business news channel will be launched on Oct. 15.

Murdoch's News Corp. is completing its due diligence on Dow Jones, the Wall Street Journal's parent company. Murdoch made an unsolicited $5 billion bid for Dow Jones in the spring and is likely to would like to use the Journal's 750 reporters and editors to supply the new Fox Business Network (FBN) with business news.

Supermarket billionaire Ronald Burkle and MySpace co-founder Brad Greenspan met with the Dow Jones board Wednesday and are considering a rival bid for Dow Jones, say sources close to the talks.

FBN will be a direct competitor to NBC Universal's CNBC all-business channel.
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