Rio Urge BHP To Make Their Move

Mining conglomerate Rio Tinto has today moved to end speculation as to its future by urging the Takeover Panel to set a time limit for BHP Billiton to formally offer for the company, or to withdraw its interest altogether, just hours after it was rumoured that US equity firm Blackstone could be preparing to mount a bid.

The move comes at a time where the future of Rio Tinto ownership looks uncertain, with several approachs by rival BHP already turned away as undervaluing the assets of the business, which continues to perform well under strong demand from Eastern economies.

The involvement of the Takeover Panel, which regulates substantial equity transactions in the UK, could see BHP forced to ‘put up or shut up’, which would require it to be more forthcoming about its plans and to actually move to takeover, thus ending potentially damaging speculation.

The news comes on the same day as fellow mining giant Xstrata announced that it would be receptive of any potential bids for its company, suggesting the potential availability of an exit route for BHP Biliton.

BHP today refused to comment on the calls from Rio Tinto, and it is thought that negotiations are still continuing at arms length between the board of directors of both groups in order to save any potential deal.

Should the Takeover Panel motion accordingly, BHP would be forced legally to lay down the terms of its approach, or to withdraw interest altogether, thus quashing any further hopes of a bid for the company.

It remains to be seen how the Takeover Panel will find, and whether or not this will finally end the to-ing and fro-ing regarding its interest in Rio Tinto.

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