WMC puts split vote on hold (April 29, 2002)

Diversified Aussie miner WMC (WMC-N) will postpone a vote by shareholders on a plan to divide into an aluminum unit and a diversified metals unit.

Regulatory approval from the U.S. Securities & Exchange Commission is taking longer than expected; hence the delay. Also, the company is studying potential tax benefits arising from proposed de-merger legislation in Australia.

The vote was to take place in mid-June but will probably be deferred for a three months.

Last November, WMC tabled plans to split into two separate Australia-listed companies after shooting down a potential A$11-billion bid from U.S. aluminum giant Alcoa (AA-N).

The plan would separate WMC’s 40% stake in Alcoa World Alumina & Metals (AWAC) from its Olympic Dam, nickel and fertilizer divisions. Alcoa, which holds 60% of AWAC, was looking to consolidate AWAC by swallowing up WMC.