Norsk Hydro mum on rescue bid for Asia Aluminum
OSLO, June 22 (Reuters) - Norwegian aluminium producer Norsk Hydro (NHY.OL) declined on Monday to comment on reports that it may be interested in buying Asia Aluminum Holdings Ltd [ALMIN.UL].
The Financial Times newspaper reported on Monday that Norsk Hydro had made a last-minute approach to acquire the unlisted Chinese company -- placed in provisional liquidation this year -- which could help it avoid bankruptcy.
The Wall Street Journal cited a letter by a Norsk Hydro executive saying the company considered itself "uniquely placed to offer the business the strongest chance of survival". [ID:nN21481273]
"We do not comment on these types of speculations in the market," spokesmanHalvor Molland told Reuters.
Earlier this month ratings agency Standard & Poor's said the Chinese company was among a clutch of lower-rated issuers facing problems obtaining credit from banks in Asia-Pacific. [ID:nHKG332243].
Hydro has been stung by falling demand for aluminium this year exacerbated by the woes of car makers.
Nevertheless, the cash-rich company last month signed a preliminary deal to explore the possibility of building an aluminium smelter in Angola and has participated in a share issue of solar industry group NorSun. [ID:nOSN002147] (Reporting by Aasa Christine Stoltz; editing by Mike Nesbit)
