Alcoa Gives Shareholders The Reacharound

In a double whammy to shareholders, Aloca announced after hours that not only would it cut its dividend to a token 3 cents from 17 cents, but also raise $1.1 billion in stock and convertible notes, thereby diluting existing bagholders.

"By taking quick and decisive actions, Alcoa has been able to stay ahead of the evolving economic crisis,” said Klaus Kleinfeld, President and CEO of Alcoa. “Today’s actions better prepare Alcoa to manage through a prolonged downturn and position the Company for the future. We believe that we now have in place the strategic and operational fundamentals that will enable Alcoa to emerge even stronger when the economy recovers.”

While the press release has some other padding to it, incensed shareholders likely will not give a rat's behind about Alcoa's quick and decisive actions, which have already caused AA stock to sell off 12% to $5.40 after hours. Sphere: Related Content

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