MARKET TALK: Dealers Not Discounting Alcoa Bid Rumor

Alumina (AWC.AU) up 6.7% at A$7.29, holding most of its rise to 9-month high of A$7.40 as Alcoa (AA) rises 4.3% on Times report that BHP (BHP.AU) and Rio Tinto (RIO.AU) have plans to buy Alcoa. Dealers not discounting possible Alcoa bid, even though it's a well worn rumor. They argue that BHP and RIO in particular are cashed up and wouldn't mind diversifying into aluminum. "All these guys are looking to diversify and aluminum is one of the new age products," says senior trader at European broker. "It makes good sense. Someone is going to do it."