Time and time again, someone tries to put forth a buyout scenario. ridiculous! Absurd! Wishful thinking at the least. Anyone with an ounce of knowledge on the subject is fully aware of the bind RIO got in when it bought Alcan. Now they are trying to give it away at a 50% fire sale and not having much luck in doing so.
No buyout for Alcoa. It will continue to struggle for years to come to break even. The stock price wil lag all other metal companies. Just the facts. Sorry. Try copper when copper companies bottom instead of aluminum. Way too much supply in the world and costs too restrictive on margins. (See included link for backup detail)
"Rio Tinto has been forced to write off another $8.9 billion from its Canadian aluminium business Alcan, bringing total write-downs to half of its initial $38 billion investment in 2007. That is a timely reminder of how badly wrong megadeals can go in the mining sector. Rio has offered investors an olive branch with a 34% dividend increase, despite a 59% fall in full-year ..."
Don't come here and post lies.
The WSJ was saying something totally different. Rio bought at the tip top of the market. Now that we hit bottom and things are turning around AA is a clear takeover target. It's dirt cheap. It can operate profitably at low market prices whereas the competitors can not.
When things get going AA is going to take off like a rocket!!!! But a buyout might happen before that to save the buyer some money!!
Shorties can bite me.
Good luck to all.
Be realistic man! AA is a solid value in my portfolio, but $40 this year isn't happening! When the global economy recovers fully, we'll see the upper stratosphere ranges:) That, you can take to the bank!