BHP Billiton Mulls Bid for Alcoa

A report by the Times of London says that BHP Billiton, based in Australia, is considering bidding on a $40 billion bid for Alcoa.

According to the article BHP is in the early stages of evaluating the merits of a takeover and is not thought to have formally approached Alcoa, based in Pittsburgh.

There were reports earlier this year that BHP was considering bidding on the aluminum firm, but those plans were shelved. With a change in management, as well as the upcoming retirement of BHP’s CEO later this year discussion on a possible acquisition have again been taken up.

Meanwhile, Alcoa has been involved in bidding on one Alcan, one of its North American competitors. However, that bid was rejected by Alcan’s board.

Since Alcoa made its initial bid for Alcan, several other suitors have expressed varying levels of interest in the Canadian-based aluminum companies, including Rio Tinto and CVRD.