Global Alumina is in exclusive talks to sell company

Global Alumina Corp, the developer of an alumina refinery in Guinea with BHP Billiton Ltd, said it`s in talks to sell the company to an unidentified suitor. The shares jumped 14%. The exclusive talks are based on a price of US$2.65 a share, Global Alumina said today in a statement, valuing the company at about US$540 million. A final price would be determined only after a potential buyer reviews its finances and operations, said Global Alumina, which has offices in New York. Global Alumina is one of five companies planning refineries in Guinea, the world`s largest producer of bauxite ore. The ore is refined into alumina, which is smelted to make aluminum. Alumina prices have more than doubled in the past five years on rising demand from China, the world`s largest aluminum producer. Global Alumina rose 32 cents to US$2.61 on October 19 in Toronto Stock Exchange trading. The shares have more than doubled this year. BHP Billiton, the world`s largest mining company, and Global Alumina will each own a one-third stake in a refinery in Guinea that may produce 3Mt a year of alumina, along with an accompanying bauxite mine. Dubai Aluminum will own a 25% stake and the remainder will be held by Mubadala Development Co. GMP Securities LP is Global Alumina`s financial adviser on the possible transaction.