The president of state-owned Aluminum Corp of China (Chinalco) yesterday ruled out any plans to raise the company's stake in Rio Tinto after its US$14 billion share purchase last week threatened to kill BHP Billiton's bid for the global mining giant.
Describing the investment as strategic, Chinalco president Xiao Yaqin said yesterday in Sydney that the mainland firm had no intention of interfering in Rio Tinto's management.
Shares of Aluminum Corp of China (Chalco) - Chinalco's Hong Kong-listed unit - BHP and Rio Tinto jumped yesterday after Chinalco revealed on Friday its joint effort with United States counterpart Alcoa to buy 12 per cent of Rio Tinto for US$14.05 billion.
The deal came days before tomorrow's deadline for BHP, the world's largest mining firm, to decide whether to proceed with its all-share offer for Rio Tinto, the world's third-largest with mines in Australia, New Zealand and South Africa.
While Mr Xiao characterised the Chinalco-Alcoa purchase as coincidental, analysts believe BHP will have to sweeten its offer, valued at US$140 billion, if it expects to succeed.
Chalco shares led gains yesterday, jumping 11.11 per cent to HK$13.60. BHP rose 2 per cent to A$39.32 (HK$278.15) and Rio Tinto added 0.63 per cent to A$128.11.