Report: Rio Tinto may answer $131B bidBritish mining firm ponders response to takeover bid from Australian rival BHP, paper says; merger would be one of biggest deals in history.NEW YORK (CNNMoney.com) -- Rio Tinto PLC, the British mining giant, is considering a counterbid in response to a $131.57 billion takeover bid from rival Australian mining company BHP Billiton PLC, according to a report Friday in The Wall Street Journal. The merger would be one of the largest deals in history and would give the combined companies a leading market share in iron ore, copper, aluminum and other natural resources, according to the Journal. BHP's bid was unsolicited and Rio's counterbid, known as a "Pacman" defense, demonstrates Rio's "limited options," the Journal said. Rio is too large to be acquired by any other mining company and would have difficulty starting a bidding war. However, Rio's counterbid could allow the company to highlight its assets and possibly maintain its current management if an unhostile offer is made, according to the report. |
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