BHP Withdraws $66 Billion Stock Offer for Rio Tinto
BHP Withdraws $66 Billion Stock Offer for Rio Tinto (Update1)
By Rebecca Keenan
Nov. 25 (Bloomberg) -- BHP Billiton Ltd., the world’s largest mining company, scrapped its $66 billion offer for Rio Tinto Group citing the turmoil in global markets.
“The BHP Billiton board today decided it no longer believes that completion of the offer for Rio Tinto would be in the best interests of BHP Billiton shareholders,” Don Argus, chairman of Melbourne-based BHP said in a statement to the Australian stock exchange. “We have concerns about the continued deterioration of the near term global economic conditions, the lack of any certainty as to the time it will take for conditions to improve and the risks that these issues imply for shareholder value.”
BHP rose 12 percent to A$26.22 at the 4:10 p.m. Sydney time close on the exchange.
To contact the reporter on this story: Rebecca Keenan in Melbourne at firstname.lastname@example.org
big deal. They made the bid when RIO was around 33 a share.What is market cap now, around 20b? They should consider a hostile takeover or at least take a 51% stake. Im still long RIO and while I am not ready to add yet until I see gold and silver sustain rallies, you couldnt buy my shares for any less than the 33 I paid for them. I will hold this for 3 years and easily get back to even!