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Alcoa Might Get Buyout Offer: Report

BHP and Rio Tinto could be preparing bids worth more than $40 billion.
Author:

Alcoa

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rose more than 7% Tuesday after a published report said two Australian mining companies could be contemplating bids for the Pennsylvania-based aluminum giant.

The Times

of London reported that both

Rio Tinto

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and

BHP Billiton

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are working on offers that might be worth more than $40 billion for the Dow component.

According to the report, BHP and Rio Tinto are mulling separate proposals. The report said they have prepared feasibility studies but don't appear to have discussed the possibility of a buyout with Alcoa's board.

BHP appears to be more advanced than Rio Tinto in its study of an Alcoa takeover, the report also indicated.

Shares of Alcoa were lately up $2.40 to $35.30. Rio Tinto was gaining 1% to $212.57, and BHP was up 1.8% to $44.80.