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| Rio Tinto halts trading in shares | Rio Tinto halts trading in shares |
| (19 minutes later) | |
| Anglo-Australian mining Rio Tinto has stopped its shares trading, amid concern it might walk away from a $19.5bn deal with China's Chinalco. | |
| The halt was called before trading opened on New Zealand and Australian markets on Friday. | The halt was called before trading opened on New Zealand and Australian markets on Friday. |
| It will remain in place "pending the release of an announcement by the company," said Rio Tinto manager James Gerraty. | It will remain in place "pending the release of an announcement by the company," said Rio Tinto manager James Gerraty. |
| On Thursday, Rio Tinto's share price fell by 7%. | On Thursday, Rio Tinto's share price fell by 7%. |
| The firm has not denied reports it planned a huge rights issue as an alternative way to tackle its debt problem. | The firm has not denied reports it planned a huge rights issue as an alternative way to tackle its debt problem. |
| In February, the firm said that Chinalco, which already has a 9% stake in Rio, was increasing its investment. | In February, the firm said that Chinalco, which already has a 9% stake in Rio, was increasing its investment. |
| Global commodity prices hit record highs last summer before falling back sharply as the world economy slumped. | Global commodity prices hit record highs last summer before falling back sharply as the world economy slumped. |
| Speculation | Speculation |
| Under the agreed deal, state-owned Chinalco would invest $12.3bn in joint aluminium, copper and ore mining investments with Rio, plus spend $7.2bn on convertible bonds in the firm. | Under the agreed deal, state-owned Chinalco would invest $12.3bn in joint aluminium, copper and ore mining investments with Rio, plus spend $7.2bn on convertible bonds in the firm. |
| It would have represented China's largest investment in a foreign company, and at the time, Rio said the fresh investment created " a pioneering strategic partnership". | It would have represented China's largest investment in a foreign company, and at the time, Rio said the fresh investment created " a pioneering strategic partnership". |
| But there has been speculation about the status of the deal for several weeks. | But there has been speculation about the status of the deal for several weeks. |
| Some reports suggest that Rio may consider a joint venture with its one-time suitor BHP Billiton as another alternative to the China agreement. | Some reports suggest that Rio may consider a joint venture with its one-time suitor BHP Billiton as another alternative to the China agreement. |
| China increasing its investment has also been questioned by some Rio shareholders who complained that the Chinalco deal favoured the Chinese firm. | China increasing its investment has also been questioned by some Rio shareholders who complained that the Chinalco deal favoured the Chinese firm. |
| There were also worries that China, which is Rio's biggest customer, would be able to get a greater say in the price of commodities such as iron ore which are key to its growth. | There were also worries that China, which is Rio's biggest customer, would be able to get a greater say in the price of commodities such as iron ore which are key to its growth. |
| However some observers have maintained that the agreement was a good option for Rio - which has debts of close to $40bn. | However some observers have maintained that the agreement was a good option for Rio - which has debts of close to $40bn. |