Rio Gains in Sydney After Report BHP May Revive Takeover Bid

March 30 (Bloomberg) -- Rio Tinto Group, the world’s third- largest mining company, rose in Sydney trading after the Sunday Telegraph reported that BHP Billiton Ltd. may revive its failed takeover bid. Rio, seeking approval for a proposed $19.5 billion investment from Aluminum Corp. of China, rose as much as 3.6 percent to A$58.94 on the Australian stock exchange and was A$58.87 at 10:14 a.m. Sydney time. Melbourne-based BHP declined 2.6 percent and the benchmark index fell 1 percent. BHP may revisit a takeover or form partnerships with Rio after informal meetings between the management of the two companies, according to the Sunday Telegraph. BHP abandoned its $66 billion bid for Rio last year, citing declining commodity markets, the slowing global economy and Rio’s high-level of debt. “So much has changed since the deal break which we feel may compel BHP to reconsider bidding,” Liberum Capital Ltd. analysts led by Michael Rawlinson said in a March 27 report. “Capital markets are reopening, easing concerns over both the financiablity of a new deal and the viability of European Union forced disposals.” Rio Chief Financial Officer Guy Elliot said last week it had an alternative plan should the planned deal with Chinalco, as the state-owned company is known, fail. BHP spokeswoman Samantha Evans declined today to comment on the report when contacted.