$2.15 to $2.20 book build overnight , page-4

DJ Rio Tinto To Sell Lihir Stake For About A$399M

SYDNEY (Dow Jones)--Anglo-Australian miner Rio Tinto PLC (RTP) Wednesday said it has agreed to sell its 14.46% stake in Papua New Guinea's Lihir Gold Ltd. (LHG.AU) for about A$399 million.
The shares will be sold in a block trade at A$2.15 each, Rio said in a statement. Lihir shares, which are on a two day trading halt, last traded at A$2.35.
"Following our relinquishment of management rights announced on 16 September 2005, we have taken advantage of the current favorable market conditions to sell our holding in Lihir," chief executive Leigh Clifford said.
Lihir shares were put on a trading halt after the close of Tuesday trade and are expected to begin trading again Friday. Rio said the halt on Lihir remains in place.
Broking sources told Dow Jones Newswires earlier Wednesday that Wall Street investment bank Citigroup Inc. (C) bought Rio's stake after a competitive bidding process among a few "invited" brokers and plans a bookbuild at A$2.15 to A$2.20/share.
Citigroup wouldn't comment. A Rio Tinto spokesman said he wouldn't say who bought the Lihir shares.
Citigroup's bookbuild will be finalized at 1000 GMT Wednesday, sources said, with the stake likely to be dispersed among fund managers.
Another source said Lihir isn't likely to face any merger and acquisition activity as a result of the share sale.