Kaiser Aluminum selects Rusal's $295 million bid for Alpart asset

By Jeff Pines

Washington, April 21 - Kaiser Aluminum Corp. said Rusal's $295 million was the top bid for its 65% stake in Alpart, which owns bauxite mining operations and an alumina refinery in Jamaica. The $295 million is a base price and subject to adjustment.

Kaiser expects the U.S. Bankruptcy Court for the District of Delaware to confirm the winner on April 26.

Rual Trade, a member of the Rusal Group, was the stalking horse bidder with an initial $215 million bid.

Kaiser consulted with its unsecured creditors' committee and others before choosing the Rusal bid at Tuesday's court-ordered auction.

The Houston-based aluminum company hopes to close the transaction near the end of the second quarter.

As previously disclosed, under Alpart's existing partnership arrangement, Hydro Aluminium AS., which currently owns the remaining 35% of Alpart, retains the right - for 30 days following Kaiser's receipt of court approval of any sale transaction - to elect to purchase Kaiser's interests at the price specified in any agreement approved by the court.

In an April 15 court filing, Alrosa asked the court to extend the bidding deadline so it could prepare its bid.

Kaiser filed for Chapter 11 on Feb. 12, 2002. Its Chapter 11 case number is 02-10429.

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