Vedanta Climbs in London After Hiring Ex-Rio Tinto CEO Albanese
Vedanta Resources Plc (VED) rose to the highest level in two weeks in London after hiring former Rio Tinto Group Chief Executive Officer Tom Albanese as the India-focused metal and oil producer seeks a global presence.
Vedanta advanced as much as 4.4 percent to 895 pence, the highest since Feb. 19. Albanese, 56, head of the second-biggest mine operator from 2007 to 2013, was among chiefs who quit after writing down assets bought during a commodity-price surge. Sales at Rio grew from $29.7 billion in 2007 to $51 billion in 2012.
Rio Tinto paid $38 billion to buy aluminum producer Alcan Inc. in 2007, an acquisition that soured when metal prices plunged during the global financial crisis. Albanese resigned after Rio decided to write down $14 billion from its assets.
“Albanese is a very experienced mining executive with a long track record in the industry,” Paul Gait, a mining analyst at Sanford C. Bernstein Ltd., said by phone. “This kind of experience is an incredible value especially for a company trying to establish itself a global significance.”
Albanese will take up the new position on April 1, succeeding M.S. Mehta, Vedanta said today in a statement.
Vedanta advanced 3 percent to 883 pence by 10:16 a.m. in London, valuing it at 2.36 billion pounds ($3.95 billion).
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