Alumina says no information on Alcoa bid rumours
SYDNEY (Reuters) - Australia's Alumina Ltd. (AWC.AX), said it had no information regarding media speculation that BHP Billiton Ltd./Plc. (BHP.AX)BLT.L. or Rio Tinto Ltd./Plc (RIO.AX)(RIO.L) may bid for its partner Alcoa Inc. (AA.N).
Shares in Alumina, part-owned by U.S.-based Alcoa, rose for a second straight day on Wednesday on the takeover talk, following media reports that BHP and Rio have drawn up separate plans for a $40 billion tilt at Alcoa.
At 0148 GMT, Alumina was about 1 percent higher at A$7.31. The stock traded as high as A$7.44 earlier.
Alumina, in partnership with Alcoa Inc. (AA.N) in the Alcoa World Alumina and Chemicals (AWAC) joint venture, produces alumina from bauxite, which it feeds to Alcoa-run aluminum smelters or sells on the open market at a percentage of the aluminum price, typically between 12 percent and 15 percent.
Alcoa owns 60 percent of Awac and Alumina owns the rest.
Rio and BHP have declined to comment on the speculation, first raised in an article in the Times of London on Tuesday, though some analysts have downplayed the likelihood of bids, citing the unattractiveness of Alcoa's extensive metals downstream fabricating business to the two companies. ($1=A$1.29)
