Thursday June 4, 03:02 PM
Chinalco 'set to scrap tie-up with Rio Tinto'
LONDON (AFP) - Chinese state-owned aluminium giant Chinalco is set to scrap its 19.5-billion-dollar (13.7-billion-euro) tie-up with Anglo-Australian mining giant Rio Tinto (LSE: RIO.L - news) , the FT reported Thursday.
Chinalco will walk away after weeks of wrangling over the terms of the deal, according to the Financial Times website which cited people familiar with the situation.
The FT also said that Rio was considering a number of alternatives, which included a 12-billion-dollar rights issue and a joint venture with rival resources giant BHP Billiton (LSE: BLT.L - news) .
In reaction, Rio released a statement to say it was "pursuing a range of options" regarding its structure -- but failed to state whether the Chinalco deal would go ahead.
"Rio Tinto notes press speculation. Rio Tinto is pursuing a range of options, some of which are at an advanced stage, for maximising shareholder value and improving the group's capital structure," the miner said.
"A further announcement will be made in due course," it added.
|
|
|
Send Article by Email
Send Article by IM
Blog This with Y! 360
Printable View
