Rio Tinto shares rise on speculation of bid from BHP Billiton, CVRD

Rio Tinto Group, the world's third-largest mining company, rose in Sydney trading to its highest in more than six weeks on speculation rivals BHP Billiton Ltd. and Cia Vale do Rio Doce (CVRD) may make a joint bid. BHP Billiton, the world's biggest mining company, and possibly Rio de Janerio-based CVRD had joined forces to work on a break-up bid for London-based Rio, the Financial Times said September 4, citing market talk. Emma Meade, a spokeswoman for Melbourne-based BHP Billiton declined to comment. Rio spokesman Ian Head also declined to comment. "A lot of the buying is coming out of the U.K.," Marcus Padley, author of trading newsletter Marcus Today, wrote in a note to clients. "The new (old) story is that BHP and CVRD are going to make a joint bid for Rio Tinto. Last time this story popped up, Rio Tinto was A$83 a share and it topped out at A$105." Rio Tinto, whose shares trade in London and Sydney, rose as much as A$3.30, or 3.5%, to A$99.00, the highest since July 24 on the Australian Securities Exchange. It traded at A$98.76 at 3:38 pm