Alcoa Gives Up Chinalco Stake For Big Profit On Current Value
February 12 2009 - 3:52AM
Dow Jones News
Alcoa Inc (AA) is exploring strategic partnerships with Aluminum
Corp. of China, or Chinalco as the company gives up its stake in
Rio Tinto PLC (RTP) for significantly more than it is currently
worth.
The U.S. producer, which took a stake in Rio Tinto just over a
year-ago, will get $1.021 billion in cash for the interest by July,
it said Thursday. At current market prices, the stake is worth
around $300 million.
Strategic partnerships may include greenfield projects as well
as investment in existing operations and acquisitions, Alcoa
spokesman Kevin Lowery told Dow Jones Newswires.
The move comes as Rio Tinto announces a proposed $19.5 billion
strategic partnership with Chinalco that includes a $7.2 billion
convertible bond issue and $12.3 billion in asset sales across
Rio's aluminum, copper and iron ore business.
-By Andrea Hotter, Dow Jones Newswires; +44 (0)20 7842 9413;
andrea.hotter@dowjones.com