Rio Tinto may sell some business units to pay for Alcan purchase |
| International Herald Tribune - Jul 16, 2007 |
Rio Tinto Group may sell some of its business units to pay off debt after it completes its $38.1 billion acquisition of Alcan, the chief executive of Rio, Thomas Albanese, said Sunday.
Rio, which has already signaled it intends to sell Alcan's packaging business, will consider divesting other units or assets of the combined company, Albanese said on Australian Broadcasting Corp. television. He did not say which units may be sold.
Rio Tinto's debt-to-equity ratio will increase to "a pretty high level" of 64 percent after the acquisition, the company's finance director, Guy Elliott, said Friday. Moody's Investors Service, which estimates that Rio may borrow as much as $40 billion to finance the bid, has placed the company's $1.3 billion of rated debt on review for possible downgrade while it awaits developments on plans to reduce borrowings.
Read Full Article from International Herald Tribune
- Posted: 2007-07-16 10:11:07
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