Alcan to hire UBS on Alcoa bid defence: source

Alcan Inc. (TSX:AL) is set to hire UBS AG as an adviser alongside Morgan Stanley to beef up its defence against a US$27-billion hostile bid from rival Alcoa, a person familiar with the matter said on Wednesday.

If successful, the takeover would create the world's largest producer of aluminum, which is used in products ranging from beverage cans to planes.

Citigroup, Goldman Sachs and Lehman Brothers are advising Alcoa, which launched a hostile bid after talks between the two companies failed to reach a deal.