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Blackstone plans bid for Rio Tinto: report

By Alex Wilson
Last update: 9:15 p.m. EST Dec. 9, 2007Print E-mail RSS Disable Live Quotes

MELBOURNE (MarketWatch) -- U.S. private equity group Blackstone is reportedly putting together a consortium to launch a takeover bid for Rio Tinto Ltd. (RTP:RTP
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RTP, , ) to rival the proposed offer from BHP Billiton Ltd. (BHP.AU).
London's Telegraph newspaper reported Monday that Blackstone is in the process of assembling a consortium, which is believed to include a Chinese sovereign wealth fund.
The paper reported Blackstone is already believed to have appointed lawyers and is in talks with bankers and public relations companies.
Blackstone plans to break up the company and sell off its business units, and believes the key iron ore operations are worth at least US$110 billion, the paper said.
The paper said Blackstone already has strong links with China, after China Investment Corp. paid US$3bn for a 10% stake in the private equity giant ahead of its float earlier this year