Alcoa Shares Jump on Takeover Talk
Report says mining giants BHP, Rio separately consider $40 billion deal
Shares of aluminum industry leader Alcoa, Inc. (NYSE: AA) rose over six percent Tuesday on talk of a possible takeover bids from mining giants BHP Billiton and Rio Tinto.
Alcoa was up 6.44 percent, or $2.12 to $35.02 or in mid-day trading on the New York Stock Exchange.
The Times of London said Tuesday without naming sources that the two mining firms are independently considering the feasibility of the purchase but have not contacted the American company's board. Any plan would pay at least $40 billion for the company, the report said.
Meanwhile a Reuters report cites a source close to the matter who rebuts the Times report, stating that BHP is not working on a bid.
The source said that BHP would not be interested in the bid because Alcoa's consumer businesses, including packaging are of no interest to the mining firm.
The Times also says Alcoa board members have made a list of new chief executives, which includes BHP executives as replacements.
Among the candidates are outgoing BHP chief Chip Goodyear and executive directors Marius Klopers and Chris Lynch, as well as Alcoa executive vice president Helmut Wieser.
BHP is further along with its planning than Rio, the report said.
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