Alcan downgraded to "neutral"

NEW YORK, May 8 - Analysts at Banc of America Securities downgrade Alcan Inc (AL.NYS) from "buy" to "neutral." The target price is set to C$86.

In a research note published this morning, the analysts mention that Alcoa’s takeover bid for Alcan values the latter company’s bauxite/alumina, primary metals and downstream businesses at C$5.6 billion, $14.4 billion and $14 billion, respectively. There is a possibility of certain diversified mining companies also bidding for Alcan, the analysts say.