BHP Billiton has emerged as a possible white knight merger partner for Alcan, as the Canadian aluminium group battles against an unwanted $33 billion (£16.7 billion) takeover attempt from rival Alcoa.

The Anglo-Australian mining group is reported to have held early-stage talks with Alcan after US-based Alcoa made its offer earlier this month.

A combination of Alcoa and Alcan has long been rumoured within the metals industry, although the offer raised protests from politicians in Ottawa and Quebec City.

Alcan yesterday urged its shareholders to reject the hostile approach.

Yves Fortier, chairman, said the board had concluded that the proposed offer was not in the best interests of shareholders. He said the offer “does not adequately reflect the value of Alcan’s extremely attractive assets, strategic capabilities and growth prospects”.

He also said Alcan had not offered enough of a premium to secure control of the company.

Alcoa launched its cash and stock bid for Montreal-based Alcan earlier this month, after almost two years of private talks failed to produce a negotiated agreement. It believes a combination of the two companies will allow the group to make annual cost savings of $1 billion a year.

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