Chinalco says no plans to increase Rio Tinto stake |
| MarketWatch - Feb 4, 2008 |
President Xiao Yaqing Monday said his company has no plans to increase its stake in Anglo-Australian mining giant Rio Tinto PLC, and even dangled the possibility of selling its holding to BHP Billiton Ltd. in the unlikely event of its rival offering a premium to the surprise GBP60 a share the Chinese giant paid last week.
Chinalco and U.S. heavyweight Alcoa stunned the market Friday with the announcement that they had jointly purchased 12% of Rio Tinto's London-listed shares for $14.1 billion. The stake accounts for 9% of the company when its Australian shares are taken into account.
Xiao is now on a visit to Australia that looks designed to soothe any local concerns about a Chinese government-owned entity taking a stake in Rio Tinto, which operates mines seen as important to the Australian economy.
The Chinese group has already submitted a voluntary application to Australia's Foreign Investment Review Board for approval of its investment in Rio Tinto but Xiao said this did not mean it planned to purchase more shares in the miner.
Read Full Article from MarketWatch
- Posted: 2008-02-04 09:09:41
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