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| Version 1 | Version 2 |
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| BHP formalises Rio takeover offer | |
| (about 6 hours later) | |
| Anglo-Australian mining giant BHP Billiton has said it has formalised a takeover bid to buy its rival Rio Tinto in a deal worth about $147bn (£74.8bn). | Anglo-Australian mining giant BHP Billiton has said it has formalised a takeover bid to buy its rival Rio Tinto in a deal worth about $147bn (£74.8bn). |
| BHP sweetened its original bid approach, offering 3.4 of its shares for every Rio Tinto share - better than the previous three-for-one offer. | BHP sweetened its original bid approach, offering 3.4 of its shares for every Rio Tinto share - better than the previous three-for-one offer. |
| Rio had spurned an offer at that level, saying it undervalued the firm. | Rio had spurned an offer at that level, saying it undervalued the firm. |
| A tie-up would create a business with a third of the world's iron-ore market, but a deal could still face resistance. | A tie-up would create a business with a third of the world's iron-ore market, but a deal could still face resistance. |
| "The offer should be enough to get BHP talking to Rio," said Rob Patterson, managing director of fund manager Argo Investments. | "The offer should be enough to get BHP talking to Rio," said Rob Patterson, managing director of fund manager Argo Investments. |
| "We think to raise the offer to that degree probably makes sense." | "We think to raise the offer to that degree probably makes sense." |
| Rio Tinto's chairman Paul Skinner said the company would "consider the terms of the proposal carefully". | |
| He urged shareholders not to take any action until the firm had completed their assessment of BHP's offer. | |
| Obstacles | Obstacles |
| Last week, Chinese mining firm Chinalco teamed up with US aluminium giant Alcoa to buy a 9% stake in Rio Tinto for $14.05bn. | |
| Analysts said the move, the largest Chinese investment overseas, was an attempt to block BHP's efforts to take control of Rio. | |
| Alcoa and Chinalco said at the time they did not intend to make an offer for the whole of Rio Tinto. | Alcoa and Chinalco said at the time they did not intend to make an offer for the whole of Rio Tinto. |
| But they said they reserved the right to do so if Rio received a firm bid from a third party. | But they said they reserved the right to do so if Rio received a firm bid from a third party. |