Alcoa may sell its packaging products business
28 Apr 2007
Mumbai:
Alcoa, the world''s largest aluminum company, might
put its packaging and consumer businesses up for sale
to focus on metal production.
Alternatively, the company said, it would look for strategic
spin-off as a separate consumer product company with
Reynolds Wrap or form joint ventures.
The company said it would explore Separately, the company
said that it would also explore strategic alternatives
for its electrical and electronic solutions unit and
its automotive castings business.
"We''re going to look at all options available,"
said Kevin Lowery, an Alcoa spokesman.
He said Alcoa had hired bankers to advise in the process,
but did not name them. The company expects to complete
the process by end-2007.
Alcoa''s packaging businesses generated about 10 per
cent, or $3.2 billion, of the company''s total revenue
and about 3 per cent, or $95 million, of after-tax operating
income in 2006. It also employs about 10,000 people
in 22 countries around the world.
The
businesses that will be included for the hive-off include
the flexible packaging, consumer products, Reynolds
Food Packaging and Closure Systems International, Alcoa
said in a statement.
Alcoa shares climbed as much as 7 per cent. The scrip
closed $1.81 higher at $35.76, after rising as high
as $36.50 in earlier trading.