Citi Skeptical Of Alcoa Split: Are There Benefits?

Alcoa has announced that it will be splitting its business into two separate entities by the end of 2016. This announcement comes as somewhat of a surprise to Wall Street. Citi Research analyst Brian Yu issued a new note this week in response to the decision.

The Plan

Alcoa is planning in splitting its Upstream operations and its Value-Add operations into two unique public companies. It has not yet made details on capital structure, stand-alone financials, costs or other terms available.

Follow-Up Call

Yu placed…

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