05 Dessember 2007
Baosteel may bid for Rio Tinto

China's largest steel producer Baosteel Group is likely to launch a bid for mining group Rio Tinto, state media reported Tuesday, citing a senior official with the Chinese company.

"We are considering it, and the chance of putting forward a bid is very high," the 21st Century Business Herald said, citing Xu Lejiang, chairman of Baosteel.Xu told the newspaper that the bid plan is still under study and they have not signed any agreement with Rio.

Last month, Rio Tinto rebuffed BHP Billiton's proposal to merge the world's third biggest and largest miners respectively, to create a US$350 billion behemoth, saying it did not reflect the group's real value.BHP's offer of three shares for each Rio Tinto share values Rio at about $124 billion.

Meng Haibiao, a Baosteel spokesman, said he was unaware of the plan and declined to comment on the chairman's remarks when contacted by AFP.China is one of the largest buyers of Australian iron ore, which is vital to the huge Chinese manufacturing sector.

Sumber : The Jakarta Post, Page : 15 


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