UPDATE 3-Bahrain seeks over $1 bln from Alcoa in lawsuit

(Recasts, adds further Alcoa comment)

NEW YORK, Feb 28 (Reuters) - A smelting firm in Bahrain is seeking more than $1 billion in a lawsuit against U.S. aluminum manufacturer Alcoa Inc (AA.N: Quote, Profile, Research), alleging a 15-year conspiracy involving overcharging, fraud and bribery.

Aluminum Bahrain, known as Alba, alleged in the suit filed in U.S. federal court on Wednesday that Alcoa steered payments for alumina, the key material for making aluminum, to companies abroad in order to pay kickbacks to a Bahraini government official.

The firm, which is 77 percent owned by the government of Bahrain, also alleged Alcoa overcharged it for alumina. It did not name the official to whom bribes were allegedly paid.

According to the suit filed in U.S. District Court for the Western District of Pennsylvania, the bribes were sent through a series of shell companies controlled by Alcoa and resulted in hundreds of millions of dollars in overpayments.

Alcoa supplied the alumina from its Australian unit to a Singapore-based company controlled by Victor Dahdaleh, a Canadian citizen who lives in Britain and who, according to the lawsuit, facilitated the bribes that caused Alba to overpay for the material starting in 1993.

Alba said in the lawsuit that it was seeking damages in excess of $1 billion, including punitive damages.

"The suit was filed very late last night, so we have not had an opportunity to review the allegations," said Alcoa spokesman Kevin Lowery on Thursday. "That said, we are not aware of any wrongdoing by any of our employees or by the company.".

Later, Lowery told Reuters that Alba, a 30-year customer of Alcoa, contacted the U.S. company two weeks ago and asked Alcoa to investigate and settle the case.