BHP Billiton propose to loan $55b to support bidding for Rio Tinto

BHP in negotiating with Sub-underwriting banks, propose to loan $55b to support bidding for Rio Tinto. This loan creates a historical record. BHP Billiton and his commissioned manage bank—Barclays Bank, BNP Paribas, Citigroup, Goldman Sachs Group, HSBC, Santander Bank, Union Bank of Switzerland has contact more than ten banks to sub-underwriting this loan. Information said that each bank should offer $2.5b. The base price of this loan is 50-60, that is doubled the loan base point of BHP takeover Rio Tinto. This $40b will used on bidding financing, the rest will use on $30b share repurchase. 30% of this loan due to one year, left is 3 to 5 years.