BHP Billiton and Rio Tinto have drawn up plans for a $40 billion (£20.5 billion) takeover of Alcoa, one of the world’s largest aluminium groups, The Times has learnt.

It is understood that the two are independently considering an approach for Alcoa and have drawn up feasibility studies for a bid, but they are not thought to have yet approached the board of the Pittsburgh-based company.

BHP and Rio, both Anglo-Australian mining giants with large aluminium operations, are looking at ways to expand production as prices hit record levels.

Alcoa is considering its own future and has drawn a list of potential new chief executives, The Times has also learnt.

Ironically, BHP executives feature prominently on the wish-list of new leaders, which is believed to have been put together at the request of Alcoa board members.

Sources close to those on the list say that BHP’s outgoing chief executive, Chip Goodyear, and the executive directors Marius Kloppers and Chris Lynch have been approached or are being considered.

Mr Kloppers and Mr Lynch are also leading candidates to replace Mr Goodyear, who is to leave BHP this year.

Also on the list is Helmut Wieser, Alcoa’s executive vice-president. Another of the internal favourites, Cynthia Carroll, is no longer available, having taken the top job in Anglo American.

BHP, which produces about 1.3 million tonnes of aluminium a year, is understood to have done the groundwork on a bid for Alcoa.

Rio, which produces about 1.2 million tonnes of the metal, has considered a bid for Alcoa, but is not thought to have progressed as far as BHP.

Any deal is likely to value Alcoa at more than $40 billion, which would make it by far the largest target in the recent round of mining takeovers.

Last year Xstrata and CVRD set the pace in the mining sector with acquisitions worth $17 billion and $19 billion. Freeport-McMoRan’s offer of $26 billion for Phelps Dodge will be decided next month.

Alcoa is seen as a target by many analysts because it is struggling to expand its business and compete with Russia.

Alcoa and Alcan, the traditional leaders in the aluminium industry, now trail RusAl as the largest producer in the world.

Alcoa’s share price has also struggled, and was down nearly 30 per cent at its worst point last year. The stock has since recovered some of its losses, partly as investors anticipate a change in direction. Alcoa shares were among the biggest midday risers on Wall Street yesterday.

A change of direction could be provided internally as Alcoa considers who could succeed its chief executive, Alain Belda. Board members are understood to have asked for external and internal candidates on the list of potential successors ahead of the retirement next year of Mr Belda, 63. It is not clear what involvement, if any, Mr Belda has had in succession planning.

Alcoa declined to comment last night, as did Rio Tinto. BHP said: “We look at every possible opportunity that could grow the business.”

Times Recommends

• Toyota recalls 437,000 cars including Lexus
• Myners says bonuses are bleeding pension funds
• Japanese company faked safety reports on seats