NEW YORK, March 17 (Reuters) - Shares of Alcoa Inc, which has threatened to idle aluminum smelters in Italy over a power dispute, rose 5 percent on Wednesday after Italy's parliament approved a decree offering favorable conditions to some industrial consumers.
There was no immediate comment from the Pittsburgh-based company, but in morning trading on the New York Stock Exchange, Alcoa's stock was up 70 cents, or 5.07 percent, at $14.50.
In November, Alcoa said it would temporarily idle its 194,000-tonne-per-year smelters at Portovesme in Sardinia and Fusina near Venice after the European Commission ordered it to pay back most of the state aid it had received in Italy since 2006. Alcoa has complained about high power prices in Italy.
Under the new decree, power lines connecting mainland Italy with the islands of Sardinia and Sicily would be upgraded and industrial consumers would get discounts on power supplies if they agree to be subject to temporary interruption of supplies.
Alcoa agreed in February to keep its Italian plants, which employ about 2,000 people, working for six months. The company, the government and other parties involved are expected to meet in April to evaluate the situation.
((Reporting by Steve James in New York and Svetlana Kovalyovin Rome, editing by Dave Zimmerman) Keywords: ALCOA/SHARES (steve.james@thomsonreuters.com; +1 646-223-6013; Reuters Messaging: steve.james.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
There was no immediate comment from the Pittsburgh-based company, but in morning trading on the New York Stock Exchange, Alcoa's stock was up 70 cents, or 5.07 percent, at $14.50.
In November, Alcoa said it would temporarily idle its 194,000-tonne-per-year smelters at Portovesme in Sardinia and Fusina near Venice after the European Commission ordered it to pay back most of the state aid it had received in Italy since 2006. Alcoa has complained about high power prices in Italy.
Under the new decree, power lines connecting mainland Italy with the islands of Sardinia and Sicily would be upgraded and industrial consumers would get discounts on power supplies if they agree to be subject to temporary interruption of supplies.
Alcoa agreed in February to keep its Italian plants, which employ about 2,000 people, working for six months. The company, the government and other parties involved are expected to meet in April to evaluate the situation.
((Reporting by Steve James in New York and Svetlana Kovalyovin Rome, editing by Dave Zimmerman) Keywords: ALCOA/SHARES (steve.james@thomsonreuters.com; +1 646-223-6013; Reuters Messaging: steve.james.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
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