Shares of New York-based Alcoa slid $2.91, or 7.1 percent, to $38 as of 4 p.m. in New York Stock Exchange composite trading. That's the steepest decline since Sept. 10, 2004.
Alcoa dropped its $27.7 billion hostile bid for Canadian aluminum producer Alcan on July 12 after Rio Tinto Group bid $38.1 billion. Alcoa's withdrawal renewed speculation the company itself may be a takeover target.
``While Alcoa could potentially entertain an Alcan type bid, we believe the limited list of buyers, the potential long term benefits of an asset restructuring in downstream and upstream segments, plus increasingly strong fundamentals on the aluminum market, provide a strong incentive for Alcoa to remain independent,'' Goldman analyst Oscar Cabrera wrote in a note to investors. "
Read the entire story by Sarah Rabil on the source link below.