Alcoa is having an incredible time in the market this morning, and for good reason. Rumors are breaking that a takeover may be coming the company’s way. This is leading to investor excitement and sending the stock up. As is almost always the case, our partners at Trade Ideas were the first to alert us to the gains. At the moment (11:20), AA is trading at $34.31 per share after a gain of $1.40 per share (4.25%) thus far today.
Rumors Say RIO Will Take Over AA
As mentioned above, Alcoa is having an incredibly strong start to the trading session today as takeover rumors break. The rumors suggest that Rio Tinto is interested in taking the company over. However, the rumors are overwhelmingly vague and do not offer a price suggestion.
It’s important to keep in mind that these types of rumors pop up in the market all of the time, and in most cases, they are invalid. While it is exciting to think that RIO is going to take AA over, with no confirmation from either side and nothing to go on but a vague rumor, chances are that it’s not going to happen.
What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will be keeping a close eye on AA. In particular, we’re interested in learning if there is any validity to the idea that RIO may take the company over. While we don’t think that this will be the case, anything can happen in the market. We’ll continue to follow the story closely and bring the news to you as it breaks!
What Do You Think?
Will RIO take AA over? Join the discussion in the comments below or on StockTwits!
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