BHP Shouldn't Increase Rio Offer, Wallace, Midas Say

BHP Billiton Ltd., the world's largest mining company, shouldn't raise its hostile $135 billion takeover bid for rival Rio Tinto Group, said Midas Management Corp. and Wallace Funds Management.

``It doesn't make sense to pay more for the Rio assets,'' Michael Birch, who helps manage the equivalent of $140 million, including Rio and BHP shares, said from Sydney. ``It can't increase the offer without diluting the value of its own assets.''