china alco to block the bid

CHINESE state-owned company Chinalco would consider bidding for a majority stake in Rio Tinto if another company attempted a takeover, a US intelligence firm says.

Stratfor, which provides strategic intelligence on global business, economic, security and geopolitical affairs, says it has spoken with a source "close to the Australian government" who says Chinalco will block any competing bid.

"Beijing appears set on blocking an attempt by the world's largest mining company, Australia's BHP Billiton, to swallow up Rio Tinto, a move that would create a mining goliath worth nearly $350 billion," Stratfor said in a briefing today.
Sorry if you guys already read this on the new website.


"Considering that domestic energy security tops the Chinese government's agenda, it is a given that Beijing is looking to carve out a niche in the world's key resource sectors using state-owned energy companies."

Chinalco and US partner Alcoa Inc already have a 12 per cent stake in Rio Tinto.

"It is unclear exactly how much more of a stake the Chinalco-Alcoa consortium would be willing to buy and at what price to counter BHP Billiton's bid," Stratfor said.

"The highest stake rumoured until now has been up to 20
per cent."



Seem this gonna be bad news....