Australia's Alumina jumps on $2.2 bln buyout offer from Alcoa

Alumina

26/02/2024 24:36

(Adds analyst comments)
    ** Shares of Alumina Ltd  AWC.AX  jump as much as 8.8% to
A$1.110, posting their biggest intraday pct gain since Jan 10 
    ** Alumina producer receives non-binding, conditional buyout
offer from U.S. aluminium producer Alcoa  AA.N , valuing the co
at $2.2 bln
    ** Under the offer, Alumina shareholders to receive 0.02854
shares of Alcoa common stock for each share held
    ** Citi says investors would need to quiz both cos regarding
potential tax benefits for Alcoa from the offer
    ** "This looks to be a less than generous offer, which has
been able to garner board support, raising the question as to
what the board's baseline assumptions are for the WA assets" -
Citi 
    ** Alumina shares hit their highest level since Feb 19 
    ** About 11.0 mln shares change hands vs the 30-day avg of
9.3 mln shares
    ** Alumina up 12.7% YTD, as of last close

 (Reporting by Echha Jain in Bengaluru)
 ((Echha.jain@thomsonreuters.com))