New Alcan takeover bid in the works: report

Mining giant Rio Tinto is reported to be readying a $34 billion US bid for Montreal's Alcan Inc., according to reports Wednesday.

Citing unnamed sources, the Times of London reported that Rio Tinto's bid will be worth $90 US per share, topping a current offer from U.S.-based Alcoa Inc.

An Alcan spokewoman told the Globe and Mail that the company is now talking with more than one company about a possible offer to counter Alcoa.

In a recent filing with the U.S. Securities and Exchange Commission, Alcan confirmed it has "undertaken negotiations concerning potential strategic transactions and alternatives to the Alcoa offer."

Alcoa's $27-billion US bid — or $33 billion US when acquired debt is included — was recently extended to Aug. 10. Alcan turned down the offer when it was announced in May.

Alcan has turned down requests from Alcoa to hold meetings regarding the possibility of sweetening its takeover offer.

Shares of Alcan rose $4.20 to close at $94.40 on the TSX.