Alcoa (NYSE:AA) shares were the biggest gainers among blue-chips in pre-market trading after the group announced plans to split itself in two.
Alcoa shares were up 5.3$ at US$9.55 two hours ahead of the open, on hopes that the plan to split into two discrete publicly listed companies will release value from the aluminum producer.
The split is expected to be completed in the second half of this year and will create an "upstream company", focused on bauxite, alumina and aluminum, and a "value-add company", focused on innovation and technology, with a strong presence in the aerospace sector.
The upstream-focused company will retain the name Alcoa, but judging by the announcement that chief executive officer (CEO) Klaus Kleinfeld will become CEO of the new, as yet unnamed entity, it looks like the "value-add" company is regarded as the sexier prospect.
Kleinfeld will remain chairman of Alcoa throughout the demerger process.