Rio shareholders balk at Chinalco deal on outlook

Rio Tinto Group, battling shareholder opposition to a proposed US$19.5 billion investment from Aluminum Corp of China (Chinalco, 中國鋁業), said it will weigh the views of investors on the deal as market conditions improve. “It’s a situation that is evolving, and as has been made mention, we certainly have seen economic conditions improve since the deal was announced in February,” Sam Walsh, chief of the London-based company’s iron ore unit, told reporters yesterday in Canberra. “We need to take into account in our deliberations what our shareholders see as the key issues.” Rio’s new chairman Jan du Plessis arrives in Australia this week to hold talks with shareholders and government officials on the accord, Walsh said. “Once we have heard all those views we will determine the course of action in relation to the Chinaclo strategic alliance,” Walsh said after giving a speech to the Minerals Week 2009 conference. The company needs to seek these views “before determining if there is any need to revise,” he said. Rio has agreed to sell US$7.2 billion of convertible debt and US$12.3 billion of stakes in its mines to Chinalco, potentially doubling the Chinese company’s shareholding to 18 percent. The company has a “plan B” if investors or regulators reject the Chinalco proposal, chief financial officer Guy Elliott said in March. Rio would consider selling shares, bonds or more assets, and would also look at rescheduling debt or a combination of the four options, he said. This story has been viewed 189 times. source：www.taipeitimes.com