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.
Good day,
James
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