Australia | Feb 13 2007
By Rudi Filapek-Vandyck
It’s not that the rumour is exactly new, but our market sources have informed us that UK newspaper The Times has just published a new chapter to the drawn out takeover speculation surrounding North American aluminium group Alcoa. And yes, BHP Billiton (BHP) and Rio Tinto (RIO) both feature prominently in it.
Apparently, the story has again captured investors’ attention with our sources indicating the story is being emailed across all corners of the country this morning.
So what has The Times come up with we didn’t already know?
The newspaper says it has been informed both BHP and Rio “are independently considering an approach for Alcoa and have drawn up feasibility studies for a bid, but they are not thought to have yet approached the board of the Pittsburgh-based company”.
As with every good story, there’s always room for an intriguing twist. In this case it is that Alcoa is considering its own future and has drawn a list of potential new chief executives. And whatdayaknow, some of BHP’s current executives feature prominently on the wish-list of potential new Alcoa leaders.
Sources close to those on the list say that BHP’s outgoing chief executive, Chip Goodyear, and the executive directors Marius Kloppers and Chris Lynch have been approached or are being considered, the newspaper reports.
Kloppers and Lynch are leading candidates to replace CEO Goodyear, who is to leave BHP later this year.
According to The Times, BHP is the most advanced in its homework for a potential tilt at Alcoa with Rio Tinto “not thought to have progressed as far as BHP”.
Further, any deal is likely to value Alcoa at more than US$40bn, which would make it by far the largest target in the recent round of mining takeovers, The Times adds.