BHP: Chalco Cannot Block BHP-Rio Marriage

Marius Kloppers, current chief executive officer of BHP Billiton, resumes promoting the company’s acquiring Rio immediately after taking office. Yesterday the CEO responded Chalco’s buying into Rio toughly that, ‘we hope to obtain Rio completely, but the bottom line in the offer is 50 percent, so the shareholder holding 9% of Rio cannot block our deal. ’ BHP has been avoiding talking directly about Chalco’s plan of increasing stake over the past two months, while yesterday Kloppers made it clear that he was not surprised about Chalco’s involvement, hoping to talk with Xiao Yaqing, head of Chalco, and persuading the latter to accept his assertion that merger will creating much more value. “If Mr. Xiao wants to do a best investment, he should merge the two companies.” Kloppers, added. When referring to whether Xiao Yaqing could take part in the combined company’s management or board of directors, the CEO said Xiao isn’t a board member of Rio. Once again he publicly voiced his resolution of taking over Rio, noting no matter Vale gave up Xtrata or the economy is slowing down, they won’t affect his determined mind. He tried to calm down the world’s concern about his merger, saying the combined company could just supply 20% of Chinese consumption in iron ore, which is not enough for controlling the market price, furthermore, iron ore prices are determined by various factors on market. ‘we will accept the price, what we will determine is the supply.’ He also said he was not disappointed by the failed talks with Chinese steel producers on the company’s increase on iron ore before Aril 1st.