NEW YORK (TheStreet) -- Shares of Alcoa (AA) - Get Report are slumping 1.26% to $9.39 in mid-afternoon trading on Friday, as its joint-venture partner Alumina Limited (AWCMY) threatens to interfere with its plan to split into two separate companies.
Alumina says it will block Alcoa's split of the manufacturing business from its legacy smelting and refining segment unless it revises a joint-venture agreement between the two companies, Alcoa executives said in a lawsuit, Bloomberg reports.
Alumina will only agree to the planned separation if Alcoa grants "wholly unwarranted and highly valuable concessions" related to their joint operations, according to court filings.
Alumina has "no consent or first-refusal rights in connection with Alcoa's separation," Alcoa contended in the lawsuit, Bloomberg adds.
Alcoa is a New York City-based aluminum producer.
Separately, TheStreet Ratings team rates the stock as a "hold" with a ratings score of C.
Alcoa's strengths such as its solid financial position based on a variety of debt and liquidity measures that we have evaluated are countered by weaknesses including poor profit margins, weak operating cash flow and a generally disappointing performance in the stock itself.
You can view the full analysis from the report here: AA
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.