BHP And Alcan: Is It Finally On?

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By Rudi Filapek-Vandyck

It is widely believed BHP Billiton (BHP) approached Canada based aluminium giant Alcan last year, but nothing eventuated. So the rumour mill continued, dragging Rio Tinto (RIO) and all other possible suitors in the plot. A combined Alcan-Alcoa had been speculated on as well, and was finally confirmed earlier this month when Alcoa decided to make an official approach.

It appears though the board at Alcan has different ideas than the board at Alcoa and Alcan has now fallen back on last year’s idea: hello BHP?

Canada’s Globe and Mail reported the reopening of talks between Alcan and BHP yesterday and the news is all over the place this morning. One doesn’t even have to google the names involved to stumble over the news on Thursday morning.

Yesterday, speculation about attempts by Alcan to achieve a better offer than Alcoa’s US$33bn proposition on the table drove the Canadian aluminum giant’s shares up about four per cent – far above the offering price.

As is custom in these matters, spokesmen for both Alcan and BHP declined to comment when asked about the matter. However, all investors needed to know came from the mouth of Alcan CEO Dick Evans who declared his company is in “ongoing discussions with third parties about various other transactions.”

Some media reports have BHP Billiton CEO Chip Goodyear stating “We always look at acquisition opportunities” at a conference in Perth.

So is it finally on? Never say never.

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