Norsk Hydro mum on rescue bid for Asia Aluminum

OSLO, June 22 (Reuters) - Norwegian aluminium producer Norsk Hydro declined on Monday to comment on reports that it may be interested in buying Asia Aluminum Holdings Ltd. The Financial Times newspaper reported on Monday that Norsk Hydro had made a last-minute approach to acquire the unlisted Chinese company -- placed in provisional liquidation this year -- which could help it avoid bankruptcy. The Wall Street Journal cited a letter by a Norsk Hydro executive saying the company considered itself "uniquely placed to offer the business the strongest chance of survival". "We do not comment on these types of speculations in the market," spokesman Halvor Molland told Reuters. Earlier this month ratings agency Standard & Poor's said the Chinese company was among a clutch of lower-rated issuers facing problems obtaining credit from banks in Asia-Pacific. Hydro has been stung by falling demand for aluminium this year exacerbated by the woes of car makers. Nevertheless, the cash-rich company last month signed a preliminary deal to explore the possibility of building an aluminium smelter in Angola and has participated in a share issue of solar industry group NorSun.