Replies to post #13 on Bauxite (Al)

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Post says analysts foil Alcan rumours over Hindalco

2007-06-05 07:01 MT - In the News

The Financial Post reports in its Tuesday edition aluminum industry experts are throwing cold water on the latest far-fetched rumour circling Alcan -- that it is pondering a hostile bid for India's Hindalco Industries Ltd. The Post's Peter Koven writes a published report in India said Monday that Alcan may join with India-based copper producer Sterlite Industries Ltd. to bid for Hindalco, the country's biggest producer of aluminum. The move would be part of a takeover defence against Alcoa Inc. "I find it very hard to believe that Alcan's board could convince themselves that this is the best thing for shareholders, giving up the substantial premium that's in their share price as a result of the Alcoa bid," said one analyst. While Monday's report was dismissed quickly by the investment community, it was still enough to drive Hindalco shares up on the Bombay Stock Exchange. Hindalco is a familiar name to Alcan shareholders. It recently bought the company's rolled products spinoff Novelis Inc. for $5.9-billion. That decreases the likelihood that Alcan would have any interest in buying it, experts said. Hindalco also has a major shareholder, the Aditya Birla Group, that is not seen as a likely seller.