Alcoa Won’t Acquire Reynolds Mill

Pittsburgh-based Aluminum Co. of America scrapped plans to acquire an Alabama aluminum rolling mill from Reynolds Metals Co. after the Justice Department sued to block the $250-million sale on antitrust concerns. In a letter to Richmond, Va.-based Reynolds Metals, Alcoa Chairman and Chief Executive Paul O’Neill said the letter of intent the two companies signed in April is “no longer operative.” The decision leaves Reynolds Metals with three options--find another buyer, operate the mill itself or shut it down--as it attempts to realign its assets to boost profit. Reynolds Metals shares rose 75 cents to close at $59; Alcoa shares rose 75 cents to close at $69.88. Both trade on the NYSE.