Bloomberg News

Rio Tinto May Split Off Pacific Aluminium Unit, Independent Says

April 15, 2012

Rio Tinto Group (RIO) may spin off its Pacific Aluminium unit and use debt secured with the assets to pay shareholders a special dividend, the Independent on Sunday said, citing a person close to the company it didn’t identify.

The payment may be for as much as A$1 billion ($1.04 billion), with the creation of a separate aluminum company traded in Australia scheduled for the end of the third quarter, the newspaper reported.

A spokeswoman for Rio said it’s not in a hurry to divest the Pacific Aluminium assets and may wait until the economic climate improves, the Independent said.

To contact the reporter on this story: Paul Dobson in London at pdobson2@bloomberg.net

To contact the editor responsible for this story: Daniel Tilles at dtilles@bloomberg.net


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