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Press ReleaseFrontier Strategy Group Senior Vice President Stephen Bailey Discusses Speculation Surrounding the Possible Acquisition of US-Based Aluminum Giant ALCOA on CNBC CAMBRIDGE, Mass. – (BUSINESS WIRE) – February 13, 2007 – Frontier Strategy Group Senior Vice President and natural resources expert Stephen Bailey discussed speculation that both BHP Billiton and Rio Tinto are considering takeover bids for ALCOA, a US-based aluminum company that is the world's second-largest producer of the metal. At the outset, Mr. Bailey noted that "current speculation concerning possible takeover bids by BHP Billiton and Rio Tinto has been denied by both companies" so current discussions are "hypothetical at this point." Mr. Bailey addressed the issue of whether US regulators should consider blocking the acquisition of such a large, US-based mining company by foreign interests: "The US government should follow the same advice it gives to countries such as China and Russia and avoid treating large, private natural resources companies as national companies that are off limits to foreign investors," Mr. Bailey said. He went on to caution that "US regulatory actions to block such mergers are likely to have long-term negative consequences for US companies seeking to invest abroad as foreign governments retaliate against US unwillingness to allow their companies to acquire US firms." Mr. Bailey pointed out that "the US government's decision to block the CNOOC-UNOCAL merger has made it more difficult for US companies to gain Chinese government approval for their proposed acquisitions of Chinese companies." In discussing who is likely to win in a potential bidding war for ALCOA between BHP Billiton and Rio Tinto, Mr. Bailey noted that given both companies' "tremendous size and impressive cash positions, the winner would ultimately be determined by which company wanted ALCOA the most and was willing to go to the mat to get it." He also said that the bid could "come down to whether the potential acquirers planned to break up the company or keep its collection of upstream and downstream assets intact as one entity." A webcast of Mr. Bailey's presentation can be accessed at: http://www.cnbc.com/id/15840232?video=181156758&play=1 About Stephen BaileyStephen Bailey is a Senior Vice President at Frontier Strategy Group and heads the Americas Mining & Energy practice at the Frontier Strategy Group. About Frontier Strategy GroupFrontier Strategy Group is a global consulting and advisory firm focused on the natural resources industries. Key practices include country-entry and growth strategies, M&A advisory, political risk assessments and permitting assessments. The firm is based in Cambridge, Massachusetts, and has offices in New York and Washington DC. Media Contact:
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