China ups the ante for Rio Tinto
Chinalco and Alcoa join forces to buy a 12% stake in Rio Tinto for $14 billion, taking both rival bidder BHP and the target by surprise, in a move analysts have called ingenious.
The Aluminum Corporation of China Chinalco and US aluminium producer Alcoa bought 12% of the outstanding shares of UK-listed Rio Tinto on Friday, February 1. At an outlay of $14 billion, this is the most audacious move from China Inc thus far.
Shares were purchased from a number of large investors in Rio Tinto at ú60 $118 per share, around a 20% premium to Rio TintoÆs closing price on Thursday, January 31.
The Chinalco-Alcoa stake represents a 9% holding...
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