BHP Billiton made a formal offer to buy out the company for about $150 billion. That offer will not get it done, according to Xu Lejiang, head of China's massive steelmaker Baosteel.
According to the latest report in The Guardian newspaper:
"Baosteel, China's largest steelmaker, is considering a bid for Rio Tinto according to the president of the group.http://www.guardian.co.uk/business/2007/dec/04/riotinto.china
"In an interview with a Chinese business newspaper, Xu Lejiang said his company was considering a bid for the mining giant, which has recently rejected a three-for-one share proposal from BHP Billiton, its larger rival.
"He was quoted as saying: "We are considering the matter now. The possibility of a bid is very big. The purchase plan is still at the stage of research and negotiation. We haven't signed any agreement yet."
"He added that a $200bn (£97bn) price tag would not be enough. BHP's current proposal values Rio Tinto at around $150bn."
We said in this space that BHP might have to counter with a $200 billion-plus offer. Now Baosteel is confirming that it could take MORE than that to buy out Rio. Meaning our shares could soar with the next offer, if there is one.