Feb. 1 (Bloomberg) -- Aluminum Corp. of China, the nation's biggest maker of the lightweight metal, and Alcoa Inc. bought 12 percent of Rio Tinto Group, countering BHP Billiton Ltd.'s proposal to buy Rio.
Chinalco, as the company is known, and Alcoa said they don't intend to make an offer for Rio, the world's third-largest mining company, the companies said today in a statement. Alcoa and Chinalco have invested money in Shining Prospect Pte Ltd., a Singapore-based entity, to buy the Rio stake.
BHP's three-for-one share offer for Rio was rejected by the London-based company in November. Melbourne-based BHP, the world's largest mining company, has until Feb. 6 to make a formal bid for Rio Tinto or shelve it for six months.
Lu Youqing, vice president of Chinalco, declined to comment when reached by Bloomberg News.
To contact the reporter on this story: Brett Foley in London at [email protected]
RIO Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
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