Will Alcan bid for Alcoa?

In a filing to U.S. regulators Friday, Alcan said it's reviewing all options for its future —perhaps evenmaking an offer for Alcoa, the U.S. aluminum giantthat launched a $33-billion takeover bidfor Alcan earlier this week.

The suggestion that Alcan might turn the tables on its rival came in a "question and answer" document prepared soAlcan managers could deal with employee questions. The document was filed with the Securities and Exchange Commission.

One of the questions listed asks "Is the Board considering a 'Pac-Man strategy' in which Alcan attempts to acquire Alcoa?" The answer provided says Alcan is "continuously evaluating" all options. "At this point, we have not foreclosed any options," it said.

A "Pac-Man strategy"is named afterthe 1980s video game, in which the characters try to swallow their opponents or risk being eaten themselves. In theworld of takeovers, the strategy could see Alcan buying shares in Alcoa to try to thwarta hostile takeover.

Alcan's board officially rejected Alcoa's cash and stock offer on Tuesday, dismissing it as "inadequate."

But Alcan indicated Friday that it might accept an improved bid from Alcoa. "If Alcoa brought forward a new proposal that made sense for our shareholders, we would consider it, but certainly not under the currently proposed terms and price," the Alcan memo said.

The company reiterated that it is in discussions with "third parties" but didn't identify any company. The Globe and Mail has reported that Alcan has been in talks with Australian mining giant BHP Billiton.

In the meantime, Alcan said it was "business as usual."But in the memo, the company noted that Alcan's stock "continues to trade at a significant premium of over 10 per cent to Alcoa's bid."

Alcoa's offer is worth about $81.20 a share, in Canadian funds. On Friday, Alcan shares closed at $91.65 on the TSX.