Alcoa, Inc. (NYSE:AA) shares jumped $1.90, or 5.76%, to $34.80 today on reports that BHP Billiton and Rio Tinto are each contemplating bids for the Pittsburgh-based aluminum producer. Alcoa is one of the largest players in the mining industry, valued at more than $28 billion. The Times of London newspaper initially reported on the developments (citing unnamed sources) saying that the two mining giants had were independently conducting feasibility studies for a possible acquisition of Alcoa.

Neither company has approached Alcoa's board and all companies declined to comment; however, given the rapid rise of BHP Billiton and Rio Tinto stock prices and the weak performance of Alcoa recently, this move certainly wouldn't be surprising. Moreover, Morgan Stanley noted that Hindalco's plan to acquire Novelis highlights the value of Alcoa's downstream operations. Many analysts are pegging the stock's value at between $36 and $38 per share, but perhaps more in the event of a leveraged buyout, especially if there are multiple bidders. While nothing is certain, this is certainly a stock to keep an eye on over the next few months!

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