Alumina, the Australian aluminium and alumina offshoot of former mining giant WMC, has been the subject of concerns that it was becoming increasingly reliant on debt to fund its ambitious growth commitments.

However, medium term prospects for the company are good with a weak aluminium market expected to strengthen and US aluminium giant Alcoa apparently waiting on the sidelines for an opportunity to bid.

Alcoa is Alumina's senior partner in the AWAC joint venture, which is the world's largest alumina producer, with refineries, bauxite mines and aluminium smelters spread across the globe.

Alumina has a 40% stake in AWAC - its only asset. As Alumina's share price reacts to market concerns, it is therefore more vulnerable to buyout or takeover.