Friday, August 04, 2006

Takeover Rumors on Alcan (AL) Won't Die

Takeover rumors on Alcan Inc. (NYSE: AL) continue, even after the company said it's not for sale. According to reports from the National Post, Alcan's CEO Richard Evans insists the company will maximize shareholder value by growing the company versus a sale. According to the paper, Evans said, "Are we trying to position the company for sale, or are we trying to grow the company? It's clearly the latter."

Analysts see Rio Tinto plc (NYSE: RTP) or BHP Billiton Ltd. (NYSE: BHP) as likely buyers for Alcan. Merrill Lynch analyst Vicky Binns said, "In our view, an acquisition of Alcan makes good strategic sense for Rio Tinto."

Shares of Alcan are down 0.6% to $47.30 in mid-day action Friday.


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