Alumina Ltd firm on seeking relief from Alcoa's 'confidentiality clauses'

The legal war between Alcoa Inc and Alumina Limited centred on the former’s strategic decision to subdivide itself has reportedly intensified.

In a recent development, Alumina has sought relief from the confidentiality clauses attached to information provided by Alcoa in the wake of the aluminium giant’s move to the courts to avert Alumina’s claim that a bank of pre-emptive rights would be triggered by the act of separation.

Alcoa, last September, confirmed plans to split into Upstream and Value-Add, hi-tech businesses in due course of time.

Part of the upstream division is a bauxite and alumina business called Alcoa World Alumina and Chemicals (AWAC). Its 60 per cent stakes are owned by Alcoa while the balance is owned by Australian listed Alumina. Alcoa operates the business and Alumina's interests are defined and protected by a collection of formation agreements.

Since Alcoa made the announcement in September, Alumina has been seeking detail from the majority stake holder Alcoa on the way the demerger would be structured. But, Alcoa reportedly, has not furnished Alumina with the required documents.

Now that Alumina has taken the issue to the courts, it remains to be seen if Alcoa considers divulging the details of their upcoming business restructuring to the company. Success would see Alumina take the first big step from dividend post box to a fully functioning business.