Kensico Capital Raises Stake in Novelis (NVL) to 6.3%

In a 13D filing on Novelis Inc. (NYSE: NVL) after the close Friday, Kensico Capital Management disclosed a 6.27% stake (4.6 million shares) in the company. This is up from the 3.7 million share stake the firm disclosed in a quarterly filing with regulators.

In the Purpose of Transaction section of the filing the firm noted:

"The Reporting Persons have acquired the Common Stock reported herein for investment purposes. The Reporting Persons have previously communicated with management of the Company including to suggest individuals for appointment to the Company's board of directors (two of whom were subsequently appointed to the Company's board of directors), and are supportive of recent management changes implemented by the board of directors.

The Reporting Persons expect to consider and evaluate on an on-going basis all of their options with respect to the investment in the Company. Among other alternatives, the Reporting Persons may continue to engage in discussions with management and/or the board of directors regarding theCompany, its strategic direction and opportunities to enhance the value of the Company.

In addition, the Reporting Persons may pursue other alternatives available in order to maximize the value of the investment in the Company. Such alternatives could include, without limitation, (i) the purchase of additional shares of the Common Stock, options or related derivatives in the open market,in privately negotiated transactions or otherwise and (ii) the sale of all or a portion of the shares of the Common Stock, options or related derivatives now beneficially owned or hereafter acquired by them."

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