Monday, March 09, 2009

Alcoa Sells Stake And Takes US$120m Levy

Alcoa Inc, the largest United States aluminum producer, agreed to sell its interest in Rio Tinto Group to Aluminum Corp of China and take a US$120-million charge in the first quarter.

China's largest producer of aluminum, also known as Chinalco, will pay US$1 billion to redeem notes issued to Alcoa last year, New York-based Alcoa said in a statement yesterday. Alcoa said a year ago it would contribute as much as US$1.2 billion to its investment.

Alcoa and Chinalco in February last year acquired 7.2 billion pounds (US$10.2 billion) of shares of London-based Rio. Alcoa and Chinalco acquired the shares via a so-called special purpose vehicle, Shining Prospect Pte, at 6,000 pence a share. The stock was 68 percent lower at 1,944 pence at 11:10am in London yesterday.

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