Novelis to be acquired by India's Hindalco for $44.93-share
(does anyone else feel uncomfortable when we see a major US corporation being bought out by foreign interests? We buy services or cheap goods from them that quickly depreciate in value, and they inturn use their import/export surplus to buy companies from us. China is sitting on over $1 trillion that can be used to out bid us on just about everything. Even if they pay high prices for it it leaves them better off in the end. Energy reserves is what really scares me. Our corporations have to make quarterly earnings targets for WallStreet. They will be reluctant to buy reserves unless to shows favorably on the bottomline. The China government on the otherhand is able to acguire reserves (and companies) at inflated prices as they do not have to answer to WallStreet. China sells us cheap crap to adorn our homes and bodies, and they buy commodities for the future. I do not feel good about this.)
By Robert Daniel
Last Update: 7:05 AM ET Feb 11, 2007
TEL AVIV (MarketWatch) -- Hindalco Industries Ltd., the Mumbai aluminum and copper company, definitively agreed to pay $44.93 a share for Novelis Inc., ( the world's No. 1 producer of aluminum rolled products, the companies said. In a statement, they valued the deal at $6 billion, including $2.4 billion of debt. Novelis's U.S. shares closed Friday at $38.54; they had soared 24% two weeks ago when Novelis said it was in talks with potential buyers. The Hindustan Times had also reported that India's Aditya Birla group, of which Hindalco is a member, was exploring the possibility of acquiring the aluminum company in a deal valued at $5 billion to $6 billion. Aluminum produced or recycled by Novelis is used in products like beer cans, cars and construction materials. Both companies' boards have approved the transaction, and they said they expected to close the deal in the second quarter. Hindalco said that the acquisition is not conditioned on its arranging financing. Novelis, headquartered in Toronto with executive offices in Atlanta, was spun off in January 2005 from Montreal's Alcan Inc. |
