The Canadian aluminum producer Alcan Inc., fending off a hostile $27 billion (¤20 billion) takeover bid by U.S. competitor Alcoa Inc., has entered talks with Australian mining giant BHP Billiton Ltd., a newspaper reported Wednesday, according to AP. Analysts say such a deal could be in the works, and that still other suitors may be waiting in the wings. Alcan rejected Alcoa's offer as inadequate on Tuesday, saying in a filing with U.S. regulators that the Montreal-based company was exploring alternatives, including ongoing discussions with third parties. Canada's Globe and Mail, citing unidentified people familiar with the matter, reported that Alcan was in talks with BHP Billiton, the world's biggest resource company. Alcan did not immediately respond to messages seeking comment. A BHP Billiton spokeswoman declined to comment. Bill Selesky, an analyst at Argus Research Corp., said market speculation indicates that several industry players, including BHP Billiton and Anglo-Australian rival Rio Tinto PLC, may be talking with Alcan. «Alcan fits into either one,» he said. «I think it's entirely plausible that something like this could happen.» He said Alcoa would be a particularly good fit, though it would have to raise its bid if it hopes to buy Alcan. Other potential buyers, such as BHP Billiton and Rio Tinto, were awash in cash after recent years of strong business, Selesky said. In addition to BHP Billiton and Rio Tinto, Alcan may have a third potential buyer _ Brazil's Companhia Vale do Rio Doce SA, the world's second largest mining company _ according to analyst Charles Bradford of Bradford Research/Soliel Securities. «These are the guys that are big enough to buy an Alcan,» Bradford said. Media and investment speculation has hinted at a possible $100 billion (¤74.1 billion) -plus bid by BHP Billiton for Rio Tinto. BHP Billiton Chief Executive Chip Goodyear said Wednesday he did not rule out «opportunistic» takeovers. «We always look at acquisition opportunities,» he told a business breakfast in Perth, Australia. Alcoa launched its cash-and-stock bid for Alcan on May 7 after almost two years of private talks failed to produce a negotiated agreement. On Tuesday, Alcan's board recommended that shareholders reject the bid because it believed the bid undervalued the company and was not in investors' best interests. Alcoa has maintained its offer brings attractive value to Alcan shareholders. Alcan shares rose $3.55 to $84.58 in Wednesday afternoon trading, while Alcoa shares gained $1.53 to $40.48.
