UPDATE: Rio plans counterbid for BHP?

Source: Energy Digital

Date :16/11/2007 07:21:44

Shares in BHP Billiton rose as much as 2.4 percent on Friday, after the Wall Street Journal reported that Rio Tinto was considering a counterbid for the Anglo-Australian miner.

Earlier this month, BHP made an unsolicited bid for Rio Tinto which was rejected by Rio who said the all-share takeover proposal -worth about $140 billion-significantly undervalued it.

Potential options

According to the Wall Street Journal, Rio Tinto is considering a broad array of potential options, including selling assets and other moves that could increase value for shareholders.

BHP Billiton spent yesterday in meetings with investors trying to win support for its three-for-one share deal, despite some analysts suggesting the company may have to raise its offer to at least four-for-one to get the Rio board to the negotiating table.

Rio Tinto is planning to outline its defence at an already-scheduled day of investor meetings on November 26, people familiar with the matter said.

November 16, 2007