Oct 19 2008
Alcoa said today it expects its joint shareholding in Rio Tinto to be transferred promptly and smoothly from a custodial account with Lehman Brothers International Europe in London to a custodial account with another nominee unaffiliated with Lehman Brothers. Alcoa said it is working closely with administrators of Lehman Brothers International Europe and with Chinalco, its close and long-term business partner, to achieve the transfer. Alcoa and Chinalco hold the shares jointly through a special purpose vehicle named “Shining Prospect,” which is the custodial account holder.
Shining Prospect holds the Rio Tinto shares in a separate designated custodial account pursuant to a custody agreement with Lehman Brothers International Europe. No one disputes that Chinalco and Alcoa are the owners of the shares. These shares are held in custody – they are not assets of Lehman Brothers International Europe or any other Lehman affiliate – and are therefore not subject to the claims of Lehman’s general creditors.
Alcoa’s strong partnership with Chinalco dates back to 2001. The two companies have worked closely together on growth initiatives in the aluminum industry, environmental and safety best-practice sharing, cultural exchanges in Asia and the U.S. and this recent investment in Rio Tinto plc.