Amcor Ltd. (AMC.AU), the world's largest maker of plastic soft drink bottles, said Friday it is in talks about the potential acquisition of part of Rio Tinto Ltd.'s (RTP) Alcan packaging business.

In answer to a share price query from the Australian Securities Exchange, Amcor said the confidential and incomplete discussions cover the "acquisition of part but not all" of the business, and it may consider an equity raising if it proceeds with any deal.

Rio Tinto, the world's third-largest miner, plans to cut debt by A$10 billion in 2009 through asset sales and cost cutting programs after its US$38 billion acquisition of Canadian aluminum producer Alcan to lighten its burden. Analysts have estimated the value of the Alcan packaging assets, which include flexible, pharmaceutical and tobacco packaging generating annual sales of about US$6 billion, at more than US$5 billion.

The share price query related to Amcor stock falling from A$5.35 at the close of trading Monday to its Friday low of A$4.57. Its stock ended Friday down 6.6% at A$4.69.

"Amcor believes that it is possible that the market has been speculating that Amcor is considering an equity raising in the near future," it said.

"Amcor is not currently considering an equity raising" except in relation to a possible Alcan transaction, the company said.

 -By Andrew Harrison, Dow Jones Newswires; 61-3-9671-4323; andrew.harrison@dowjones.com
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