Chinaclo remains coy

Monday's press conference given by Chinalco and Alcoa shed little light on the raiders' motivations or plans. Regardless, any BHP bid will definitely need the support of Rio's board

Whatever the motivation for the decision by Chinalco and its junior partner to spend $US14 billion on their sharemarket raid on Rio Tinto, their assembling of a blocking stake ensures that if BHP Billiton wants to maintain control of the terms of engagement with Rio it now definitely needs the target board’s support.

Until Friday it was technically feasible for BHP to succeed with a hostile bid for Rio, despite the complexities associated with trying to merge the four different legal entities within the two dual listed companies.

After Friday, when the state-sponsored Chinalco and Alcoa acquired 12 per cent of Rio’s London-listed entity, a hostile offer can only succeed with the interlopers’ support.

Monday’s press conference, given by Chinalco president Xiao Yaqin and Alcoa Australia’s Alan Cransberg, shed little light on the raiders’ motivation or plans.

{{content.question}}

Mastercard

{{ twilioFailed ? 'SMS Code Failed to Send…' : 'An SMS verification code has been sent ...' }}

Hi {{ user.FirstName }}

Looks like you have already taken a free trial

Please enter your payment details

We have sent you a code via SMS to {{user.DayPhone}}

please enter this code below to complete your SMS verification

We cannot send you a code via SMS to {{user.DayPhone}}

If you didn't receive SMS code please

SMS code cannot be sent due to: {{ twilioStatus }}

Please select one of the options below:

Looks you are already a member. Please enter your password to proceed

Please untick this box when using a public or shared device


Verify your mobile number to proceed…

Please check your mobile number below and press the Send Verification Code button. This will be used to complete your verification in the next step.

Please sign up for full access

Mastercard

Updating information

Please wait ...

Trial

Mastercard
{{ productPrice }} / day
( GST included )
Price $0
GST $0
Discount -{{productDiscount}}
TOTAL {{productPrice}}
  • Mastercard
  • Visa

Please click on the ACTIVATE button to finalise your membership

Mastercard

The email address you entered is registered with InvestSMART.

Please login or select "Don't know password"

Please untick this box when using a public or shared device


Register as a new member

(using a different email)

Related Articles