Chinalco holds back on Rio offer [Edition 3]

Mail on SundayJune 08, 2009

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Summary


CHINA'S state-owned metals group Chinalco, the biggest shareholder and customer in Rio Tinto, has yet to decide whether to take up new shares in the mining giant's surprise Pounds 9.4 billion rights issue after being excluded from consultations on the fund- raising.

Rio's decision to ditch a Pounds 12.2 billion fundraising deal with Chinalco triggered a Pounds 122 million compensation payment to the firm, but it was unclear this weekend whether it would exercise its right to buy new shares in the fully underwritten rights issue.

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Chinalco holds back on Rio offer [Edition 3]

Rio chairman Jan du Plessis s...

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