Canadian paper tips Alcan as takeover target

MONTREAL - Canada's Globe and Mail newspaper today tipped Alcan Inc. as a possible takeover target, quoting investment banking sources as saying that Rio Tinto plc and BHP Billiton Ltd. were both eyeing the Montreal-based aluminum maker.

Speculation about BHP or Rio Tinto looking at Alcan, the world's second-largest aluminum maker, and even taking a look at rival Alcoa Inc. , have circulated in Australian newspapers since the start of May. But there has been no confirmation, and Alcan stock has yet to climb significantly on the rumors.

"BHP and Rio Tinto have modeled the (Alcan) takeover, and they've been pitched (by bankers) to do the deal, but I don't think Alcan is actually in talks with anyone," the Globe and Mail quoted one analyst as saying.

Alcan shares fell C96 Canadian cents to $C55.89 ($81.08) on the Toronto Stock Exchange and dropped 6 cents to $C50.90 on the New York Stock Exchange on Tuesday.

- REUTERS