BHP Billiton launches $147bn bid for Rio
BHP Billiton has formalised a $US147bn hostile bid for its rival Rio Tinto
Anglo-Australian mining conglomerate
BHP
Billiton formally launched a hostile bid for its
rival Rio Tinto, offering
$147bn (£74.8bn), in what could be the world’s second biggest takeover bid.
BHP sweetened its previous offer, which Rio rejected for undervaluing the
company, offering 3.4 of its shares for every Rio share, conditional on 50%
acceptance of Rio Tinto shares,
Reuters
reports.
Marius Kloppers, BHP chief executive, told a briefing he had had no talks
with the Rio board, but believed the offer had widespread support. ‘We think
this offer is compelling, he said.
‘The offer should be enough to get BHP talking to Rio,’ said Rob Patterson,
Argo Investments managing director, said. ‘We think to raise the offer to that
degree probably makes sense.”