Alcan, BHP Billiton In Talks To Fend Off Alcoa

Alcan is in talks with BHP Billiton in an effort to fend off a hostile $27.41 billion takeover bid by rival aluminum giant Alcoa, Canada’s Globe and Mail reported.

Alcan has rejected Alcoa’s offer and Chief Executive Dick Evans has said the company is having “ongoing discussions with third parties about various other transactions.”

The newspaper said Alcan was holding talks with BHP Billiton but cited unnamed sources,who said BHP had approached Alcan late last year about a possible union but had been rebuffed.

Spokesmen for both Alcan and BHP declined to comment on the newspaper report.

In recommending that its shareholders reject Alcoa’s offer,Alcan called bid inadequate, setting the stage for further showdowns.

Alcan said it is exploring all options for defenses, which could include linking up with another company or turning around to bid on Alcoa.

“At this point, we are looking at all alternatives,” said Dick Evans, Alcan’s president and chief executive.“They include both internal and external alternatives.We are in ongoing discussions with third parties about various other transactions.”