Deadline given to BHP Billiton

Latest news said on Friday, December 21 - BHP Billiton will have to decide by February 6 whether to make a bid for rival Rio Tinto or walk away after the Takeover Panel issued it with a 'put up or shut up' demand. BHP, the world's biggest mining group, made public its plan on November 8 to take over third-ranking Rio and forge a mega-mining group with a market capitalisation of around $350 billion (175 million pounds). On Friday, the Takeover Panel gave it until 5 p.m. on February 6 to make an offer or walk away. The firm said it was considering its options in light of the deadline but said no decision has been taken. BHP said the deal would create value for both sets of shareholders, generating $3.7 billion in synergy benefits after seven years, and has pledged to buy back $30 billion in shares if the deal goes through. Rio quickly spurned BHP's all-share takeover proposal, saying it fundamentally undervalued Rio and its growth prospects. In an effort to fend off BHP's advances, Rio said on November 26 it would spend $9 billion in 2008 to expand output, boost dividends and generate at least $15 billion in asset sales.