Alcoa CEO: Acquired Overseas Assets Have 'Strong Operating Histories' After Stock Drop
AA sits 70% above its 52-week low of $28.11 on elevated volume (3.3× avg).
Summary
Alcoa's CEO, William Oplinger, commented that the overseas assets acquired in the recent $4.1 billion deal with South32 possess 'strong operating histories.' This statement comes after the company's shares fell 8.9% following the acquisition announcement, likely due to the deal's financing structure which includes stock. The acquisition, valued up to $5.6 billion, includes the Hillside smelter in South Africa and a stake in a Brazilian smelter, along with bauxite mining and alumina refining operations. This provides further color on the significant acquisition announced yesterday and detailed in today's SEC filings.
At the time of this announcement, AA was trading at $47.81 on NYSE in the Manufacturing sector, with a market capitalization of approximately $12.5B. The 52-week trading range was $28.11 to $84.38. This news item was assessed with neutral market sentiment and an importance score of 8 out of 10. Source: Dow Jones Newswires.