no, I think no deal would be good for BIL. problem with large mergers (call then what you will) is that they take ages to bed down and this takes management focus off the business. Soemtimes proposed synergies are not as good as expected and then of course the risk of over paying (specially seeing as Rio say they want more). So I think no deal would be good for the BIL price.
I never liked the idea of bil buying rio from day one.honestly it never really looked like going thru but who knows.How much legs does the commodity cylcle still have is a tough question to predict ,so bil could pay too much if buy rio right now imo
Alcoa Inc. Partners with Chinalco to Acquire a 12% Stake in Rio Tinto
NEW YORK - (BUSINESS WIRE) - Alcoa Inc. (NYSE: AA) announced today that it is partnering with Aluminum Corporation of China ("Chinalco") to acquire 12 percent of the UK common stock of Rio Tinto plc. Alcoa will contribute up to $1.2 billion to the total investment. Commenting on the investment, Alain Belda, Alcoa Chairman and Chief Executive Officer, said, "We have long believed that Rio Tinto has a world-class portfolio of assets and is very well positioned to prosper in the current mining cycle. This investment, made in partnership with Chinalco, allows us to mutually benefit from developments in the sector. We have known Chinalco for many years, dating back to our participation in the successful launch of Chalco's IPO, and are looking forward to this new venture." The investment will be made through a Special Purpose Vehicle, called Shining Prospect Pte. Ltd. ("SPPL") created for this purpose. SPPL is based in Singapore and wholly owned by Chinalco. Through its investment, Alcoa will acquire an equity stake in SPPL commensurate with its cash contribution to the investment.
About Alcoa Alcoa is the world's leading producer and manager of primary aluminum, fabricated aluminum and alumina facilities, through its growing position in all major aspects of the industry. Alcoa serves the aerospace, automotive, packaging, building and construction, commercial transportation and industrial markets, bringing design, engineering, production and other capabilities of Alcoa's businesses to customers. In addition to aluminum products and components including flat-rolled products, hard alloy extrusions, and forgings, Alcoa also markets Alcoar wheels, fastening systems, precision and investment castings, structures and building systems. The Company has 107,000 employees in 44 countries and has been named one of the top most sustainable corporations in the world at the World Economic Forum in Davos, Switzerland. More information can be found at www.alcoa.com (c) 2008 Business Wire. All Rights Reserved. Business Wire