Dick Evans, Alcan Inc., president and chief executive, speaks to shareholders at the company's annual meeting in Montreal, on April 26. Alcan is considering 'all options' against the Alcoa hostile takeover offer. Analysts predict a counterbid. - Reuters

Alcan Inc., said Wednesday it was considering it to a US$28.4 billion hostile takeover offer from Alcoa Inc., but declined to say if a counterbid for its U.S. aluminium rival was one of them.

"The strategic committee continues to look at all options," Alcan spokeswoman Anik Michaud said.

Michaud spoke after a press conference in Paris, during which Christel Bories, president and chief executive of Alcan's Engineered Products Group, was quoted by news agencies as agreeing that a counteroffer for Alcoa or tie-up with a big international miner were among credible options.

Alcan has rejected Alcoa's May 7 cash and stock offer, which expires July 10 and, based on Alcoa's share price on Wednesday afternoon, was worth US$75.20 a share.

Alcoa has said in securities documents that it will likely extend its deadline as it seeks anti-trust approval to put the two companies together.

Alcan argues that Alcoa's bid does not reflect the value of the Canadian company's assets, technology and growth prospects.

Meanwhile, its strategic committee of directors, along with its managers and advisers, are looking fo to Alcoa's offer. Alcan is expected to unveil its strategy before the July 10 deadline.

Two options cited by analysts include Alcan finding a white knight in the form of a miner, such as BHP Billiton, or mounting a counterbid for Alcoa.

Pursuit of the latter option, if successful, would pull the Canadian company back in the Jamaican market which it exited in the earlier part of the decade. Alcoa co-owns local bauxite and alumina assets with the Jamaican government.

Bear Stearns analyst Anthony Rizzuto said he does not think prospective suitors for Alcan could match's Alcoa's target of wringing US$1 billion of costs cuts out of combining the two companies.

Conversely, he thinks Alcan could make a US$50-a-share takeover offer for Alcoa and still be able to boost profits in 2008 if it succeeds in acquiring Alcoa.

Rizzuto cut his rating on Alcan shares to 'peer perform' from 'outperform', largely because they would probably fall if the Montreal-based company were to bid for Alcoa.

He raised his year-end 2007 price target for Alcoa to $46 from US$40.

Alcoa shares were up $1.07 or 2.7 per cent at $40.41 on the New York Stock Exchange on Wednesday afternoon.

That matched the rise in BHP Billiton's stock price, but lagged the run-up in other mining and metals stocks such as Rio Tinto and Anglo American Plc.

Alcan shares were up 77 cents at US$83.20 in New York. They climbed 97 Canadian cents to C$88.70 on the Toronto Stock Exchange.

Alcan's Paris press conference was held in the lead-up to next week's International Paris Air Show.

Earlier on Wednesday, Alcan said it had signed a long-term agreement to supply Airbus with a variety of high-performance aluminum products for aircraft, including the A380 and A350 XWB. It did not disclose financial terms of the contract.

- Reuters