The chinese reaction is typical of a dictatorship. The government there ruins the lives of lots of innocent people on the whims of communist party members, and they think they can start throwing their weight around internationally. Did they think they were offering anything other than a low ball offer?
China's reaction to this has seriously harmed their reputation, and has been a big mistake. I think they will miss out on a lot of opportunities - as it has totally underlined the fact that Chinalco is actually 100% the Chinese communist party's servant.
Business is business and politics is politics. It needs to be kept that way IMO. I think the Chinese government are expecting to throw their weight around and then get special deals. The Australian public could become very anti Chinese government if they are not careful. This would be a bad thing.
I personally think that minmetals deal is at high risk of falling over now, the shareholders need to vote and are not desperate. They may sense some attempts at bullying and special deals for management made behind the scenes.
BTW - I like Chinese people and Chinese (non-communist) culture.
RIO Price at posting:
$57.17 Sentiment: ST Buy Disclosure: Held
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