RIO Tinto has rebuffed an offer from BHP Billiton for its stake in the world’s biggest copper mine.
BHP offered $3.4bn for half of Rio’s 30% stake in Escondida, the Chilean copper mine. The company already owns 57.5%.
BHP is trying to get its rival’s shareholders to veto the Chinalco investment plan in favour of a share issue.
The company’s offer is unattractive to Rio with Chinalco recently paying $3.4bn for just 15%. Industry officials say Chinalco’s investment gives Rio greater protection from having to accept low bids from BHP for its assets.
The company has needed a significant cash injection to tackle its huge debt burden.
Add a comment