Chinese Firms Won’t Join BHP's Finance for Rio Bid

There are rumors that seniors from BHP Billiton will come to China for financing Rio Tinto bid. And a member from BHP’s Shanghai branch confirmed that it will be for Rio Tinto bid if seniors come to China. BHP Billiton issued a formal bid for Rio worth $147.4 billion, while received a spurn from the latter, as Rio considered the bid too low. BHP’s chief executive officer said the current float commodity price makes its offer much more attracting, “oil price has soared greatly since we issued the offer, and other commodity price we invest also jumped. As we plan to take over Rio by shares, it means we actually have raised the offer.” “the proposed combine has worried downstream sectors over our possible monopoly in resources such as iron ore, and International Association of Iron &Steel also oppose it, however, they won’t stop BHP’s step in expanding resources control.” Xiao Yaqing, chairman of Chinalco, said it is unfavorable for a single company to control too huge resources, the world won’t allow or back such a big company, and nobody wants a company to dominate the market. Besides, some other related large Chinese companies also stated they wouldn’t join the financing plan. COPYRIGHT All rights reserved. The copying, republication or redistribution of WAM News Content, including by framing or similar means, is expressly prohibited without the prior written consent of WAM.