SYDNEY \u2014 Aluminum producer Alcoa has agreed to an all-stock deal to acquire Australia\u2019s Alumina that values its equity at some 3.35 billion Australian dollars (US$2.20 billion).<\/p>\n
Pittsburgh-based Alcoa Alcoa said it has reached an agreement with fund manager Allan Gray Australia that gives it the right to buy up to 19.9% of Alumina.<\/p>\n Alumina owns a 40% stake in Alcoa World Alumina & Chemicals, or AWAC, a joint venture with Alcoa that runs bauxite mining, alumina refining and aluminum smelting operations.<\/p>\n \u201cAlcoa has been a proven operator of AWAC, and we recognize the value creation opportunities possible under a simplified ownership structure,\u201d said William F. Oplinger, Alcoa\u2019s president and chief executive.<\/p>\n<\/p><\/div>\n<\/div>\n
\n AA,
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\n is offering 0.02854 of its own stock for each Alumina
\n AWC,
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\n share, representing a 13% premium to Alumina\u2019s closing share price on Friday. Alumina said it recommends shareholders vote in favor of the offer, which comes after a number of previous bids by Alcoa were rejected.<\/p>\n