Went for a coffee and it's over 40.DJ BHP's Argus Says Rio Tinto...

Went for a coffee and it's over 40.

DJ BHP's Argus Says Rio Tinto Bid Well Positioned - Report11/07/2008 10:15AM AEST
MELBOURNE (Dow Jones)--BHP Billiton Ltd. (BHP.AU) Chairman Don Argus said Thursday the miner's hostile US$170 billion bid for Rio Tinto Ltd. (RIO.AU) is well positioned and that BHP will decide whether to try to reengage its rival once it has won regulatory approval for the deal.

In an interview with the U.K.'s Daily Mail Thursday, Argus said the relative share prices of the two companies have been moving in BHP's favor.

"We think it (the bid) is not badly positioned at this point," he said.

Rio Tinto has rejected the BHP offer of 3.4 of its shares for every Rio share held, which it says significantly undervalues the company.

Argus said BHP's preference is to do an agreed deal and it will wait until it has won regulatory approval for its offer before deciding on whether to try to get Rio Tinto to come to the negotiating table or to appeal directly to shareholders.

"Once we have completed that process there will be a decision made as to whether we endeavor to reengage with Rio, or whether we continue down the path that eventually leads to a proxy battle - or a decision by the shareholders as to whether they think the 45% premium can be delivered by the current management or whether there's another option for them," he said.

Argus said BHP is seeing no slowdown in demand for commodities and that supply shortfalls will continue to underpin prices driven by Chinese industrialization and urbanization, but also said the slowdown in the U.S. economy is a concern.