Tuesday, December 25, 2007 5:40:41 PM
2007-12-24
Hong Kong - China has sanctioned state-owned companies to examine three possible strategies to block BHP Billiton's proposed takeover of mining giant Rio Tinto, a report said on Monday.
Citing unnamed sources, the South China Morning Post reported strategies include forming a domestic consortium to bid for Rio Tinto, a joint bid by domestic and foreign firms, or purchasing Rio shares on the open market.
"(Companies) have approval from the State Council to go ahead and get actively involved," one source was quoted as saying.
China International Capital Corp (CICC) and Bank of China International have been retained by the government in an overall advisory role, the report said.
Earlier this month, China's largest steel company Baosteel called on the Australian government to intervene and prevent BHP Billiton from taking over rival miner Rio Tinto.
China fears a merger between BHP Billiton and Rio Tinto would lead to further sharp price increases in raw materials, particularly iron ore, which the country desperately needs to fuel its double-digit economic growth.
Sources said Baosteel approached Japan's Nippon Steel and South Korea's Posco Steel about a consortium but nothing came of the effort. The Chinese company has previously denied that it planned to make a bid.
The newspaper also said China's sovereign fund was expected to provide some financing for any mainland bid but would not lead a transaction out of fears of a political backlash.
Rio Tinto last month rejected fellow miner Anglo-Australian BHP Billiton's $142bn offer, saying it significantly undervalues the company.
British authorities have set a deadline of February 6 for BHP Billiton, the world's biggest miner, to state whether it still intends to make an offer for Rio Tinto.
- Sapa-AFP
http://www.mweb.co.za//finance/?p=FinanceNewsArticle&i=796914
Recent FE News
- Mon Power Selected by U.S. Department of Energy for Reliability Project Grant • PR Newswire (US) • 05/02/2024 05:39:00 PM
- Nearly 500 Trees to be Planted Across Mahoning Valley on Arbor Day Today • PR Newswire (US) • 04/26/2024 01:46:00 PM
- FirstEnergy Announces First Quarter 2024 Financial Results • PR Newswire (US) • 04/25/2024 08:20:00 PM
- FirstEnergy Set to Plant More Than 25,000 Trees in 2024 • PR Newswire (US) • 04/23/2024 05:11:00 PM
- Work Underway to Upgrade Electric System in Erie County, Pennsylvania • PR Newswire (US) • 04/18/2024 03:05:00 PM
- FirstEnergy Names John Combs Senior Vice President, Shared Services • PR Newswire (US) • 04/16/2024 12:15:00 PM
- Settlement Reached in FirstEnergy Ohio Utilities' Grid Modernization Plan • PR Newswire (US) • 04/15/2024 04:34:00 PM
- Tree-Trimming Work Underway to Help Prevent or Minimize Power Outages for JCP&L Customers • PR Newswire (US) • 04/10/2024 02:33:00 PM
- FirstEnergy to Webcast First Quarter Earnings Teleconference • PR Newswire (US) • 04/03/2024 03:50:00 PM
- FirstEnergy Pennsylvania Will File Rate Review to Support Continued Service Reliability Enhancements for Customers • PR Newswire (US) • 04/02/2024 11:30:00 AM
- Tree-Trimming Work Underway to Help Prevent or Minimize Power Outages in West Virginia • PR Newswire (US) • 04/01/2024 05:32:00 PM
- Northeast Ohio Electric Grid Stronger and More Resilient Following Power Line Enhancements • PR Newswire (US) • 03/28/2024 02:03:00 PM
- FirstEnergy Closes on $3.5 Billion FirstEnergy Transmission, LLC 30% Interest Sale • PR Newswire (US) • 03/25/2024 08:20:00 PM
- FirstEnergy Named Top 50 Diversity Employer by Minority Engineer™ Magazine • PR Newswire (US) • 03/20/2024 05:12:00 PM
- FirstEnergy Corp. Declares Increased Common Stock Dividend of $0.425 Per Share • PR Newswire (US) • 03/20/2024 04:40:00 PM
- Construction is Underway on Second Utility-Grade Solar Site in West Virginia • PR Newswire (US) • 03/19/2024 04:31:00 PM
- FirstEnergy's Impactful Recycling Initiatives Highlighted on Global Recycling Day • PR Newswire (US) • 03/18/2024 04:00:00 PM
- Electric Grid Upgrades Underway in Lorain County • PR Newswire (US) • 03/14/2024 06:12:00 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 03/06/2024 12:24:21 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 03/06/2024 12:23:28 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 03/06/2024 12:22:24 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 03/06/2024 12:21:34 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 03/06/2024 12:20:22 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 03/06/2024 12:18:50 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 03/06/2024 12:17:40 AM
FEATURED Cannabix Technologies Launches New Compact Breath Logix Workplace Series and Prepares for Delivery to South Africa • May 7, 2024 8:51 AM
Moon Equity Holdings, Corp. Announces Acquisition of Wikolo, Inc. • MONI • May 7, 2024 9:48 AM
NanoViricides Reports that the Phase I NV-387 Clinical Trial is Completed Successfully and Data Lock is Expected Soon • NNVC • May 2, 2024 10:07 AM
ILUS Files Form 10-K and Provides Shareholder Update • ILUS • May 2, 2024 8:52 AM
Avant Technologies Names New CEO Following Acquisition of Healthcare Technology and Data Integration Firm • AVAI • May 2, 2024 8:00 AM
Bantec Engaged in a Letter of Intent to Acquire a Small New Jersey Based Manufacturing Company • BANT • May 1, 2024 10:00 AM