BHP's Higher Bid Doesn't Sway Rio Tinto

Chinalco's purchase of a piece of the mining giant has only upped the ante on bidding from BHP, whose offers continue to be spurned by Rio Tinto

The future of Anglo-Australian mining giant Rio Tinto (RTP) remained up in the air on Feb 6. after rival BHP Billiton (BHP) raised its unsolicited takeover offer by 13%, to $147.4 billion. Rio Tinto once again rejected the approach as inadequate, in part because the sweetened bid values Rio Tinto at 10% less than the benchmark set only a few days earlier when China's largest aluminum maker, Chinalco (ACH), bought 12% of Rio Tinto in partnership with Alcoa (AA) (BusinessWeek.com, 2/1/08).

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