Rio Tinto is a world leader in finding, mining and processing the earths mineral resources. The Groups worldwide operations supply essential minerals and metals that help to meet global needs and contribute to improvements in living standards. Rio Tinto encourages strong local identities and has a devolved management philosophy, entrusting responsibility with accountability to the workplace. Major products include aluminium, copper, diamonds, energy products (coal and uranium), gold, industrial minerals (borax, titanium dioxide, salt, talc and zircon), and iron ore. The Groups activities span the world but are strongly represented in Australia and North America with significant businesses in South America, Asia, Europe and southern Africa. Rio Tinto comprises wholly owned subsidiaries (such as Borax, Comalco, Hamersley, Rio Tinto Coal Australia, Kennecott and Rio Tinto Iron & Titanium), partly owned subsidiaries (Coal & Allied and Palabora) and non-managed, (Escondida) and joint ventures (Grasberg) in which public shareholders, other companies or governments are partners.

            Red = 25 day moving average.           Green = 200 day moving average.

SALES PER ACTIVITY (Data as of 31/12/2005)

Iron:        29%
Coal:       19%
Copper     18%
Aluminum: 14.5%
Minerals:  12.5%
:              6%
Misc:        1%

Sorry cynic but didn't you buy rio @ 52.

yes, and took an absolute hammering for my pains and allowing pure greed to rule ..... bit several bullets and dumped them about 10 days ago, since which time i have acted far more prudently and profitably by trading in and out ... ditto with XTA

This looks like the BHP prospect of an offer is now over:
"Earlier today, Shining Prospect, a Singapore-based entity owned by China's Chinalco and US firm Alcoa, which has committed $1.2bn into the company by way of a convertible instrument, announced it has acquired about 12% of Rio Tinto's shares.

Chinalco and Alcoa confirmed that they do not currently intend to make an offer for Rio Tinto but said they reserve the right to do so.

No official figure was mentioned for the purchase price of the Rio Tinto stake but traders noted talk that the two companies paid 6,000p a share, well above last night's closing price."

Staggering jump today, glad I wasn't short!

Earlier today, Shining Prospect, a Singapore-based entity owned by China's Chinalco and US firm Alcoa, which has committed $1.2bn into the company by way of a convertible instrument, announced it has acquired about 12% of Rio Tinto's shares.

Chinalco and Alcoa confirmed that they do not currently intend to make an offer for Rio Tinto but said they reserve the right to do so.

No official figure was mentioned for the purchase price of the Rio Tinto stake but traders noted talk that the two companies paid 6,000p a share, well above last night's closing price.

BHP Billiton has until February 6th to formalise an offer for Rio Tinto, a deadline imposed by the UK Takeover Panel under the regulator's 'put up or shut-up' rule.

Analysts had believed that BHP Billiton would at least formalise its indicative 3-for-1 paper offer for Rio Tinto, which would have valued the world's third-largest miner at about $130bn.

The Australian newspaper had reported on Wednesday that BHP Billiton could afford to hike its share offer for Rio Tinto to 4.25-for-one, according to Rio Tinto advisor Macquarie Bank.


it would therefore make sense for anyone buying into RIO at this juncture to keep an eye on BLT price and multiply it by anything between 3 and 4.25 if only as an estimate of where a bid may be pitched

Jonathan Compton from BBC2 Working Lunch says that this investment by Shining Prospect is a blocking tactic to prevent BHP from taking control of RIO, with no intention at all of a counter bid for RIO. He says watch out; Big bounce, followed by a big fall.

he may be right or he may be wrong ...... if BLT come in with an eventual thumping bid (not necessarily the initial sighting one) of say 65, then SP will be hard pressed to block and/or RIO board will be hard pressed to counter

looks like lots of interesting reading about this over the w/e

Blimey,..... 50 stocks......hefty..!

i do it on CFD, but T10/20 would work just as well i guess ...... whichever one does, a guaranteed stop must surely be mandatory unless one is in need of a cure for severe constipation!

Cynic, and others if interested: here's some weekend reading for you from today's Times:

Move on Rio signals China's determination to secure supply

Aluminium group comes out of the shadows

Dealmaker role for Beijing as battle shifts to new metal

There's also this:

Link to Times website for earlier articles

Dinner is about to be served (aren't I lucky!) so may I wish happy studying!

If it's a spoiling move, I wonder if sp will head the same way as ITV after Sky's 135p grand purchase. Strange to think that you could have picked them up for 38 a fortnight ago when the world appeared to be caving in!

as far as i can determine, and i hope it's not wishful thinking, the consensus is that BLT will put in a low bid (norgreat surprise there), but a battle royal will ensue

I'm sure there will be a battle - there's too much at stake for the Chinese economy. This quote is from one of the above Times articles:

"Even before the ink was dry on China's deal to acquire a 12 per cent stake in Rio plc, advisers to Beijing had already approached regulators to get clearance to lift the holding to just under 20 per cent."

And I can just picture this meeting:

"It is now BHP's move. If Mr Kloppers is desperate, he might bid high for Rio and offer the Chinese a quick, dirty profit. More likely is a stalemate in which BHP makes a modest bid and the four companies, Rio, BHP, Chinalco and Alcoa sit around a table, awkwardly waiting for the first person to speak. It is like the good old days when Edwardian railroad and mining barons carved up the spoils in a gentlemen's club in Pall Mall."

interesting to note that BLT has strengethened again this morning, albeit quite modestly .... i do NOT believe that this is a reflection of a view that BLT will not step to the mark .... indeed, were that to happen, i rather suspect BLT sp will tumble

You could well be right, Cynic

So, Chinalco + Alcoa now have a 9% stake in RIO, but are also looking to buy a 35% stake in XTA. But, Anglo Am are interested in buying XTA as are Vale. But, at the same time BHP Biliton are interested in buying RIO, but that may now be blocked.
I hope I am not misreading this, but XTA would seem to be the most likely to be swallowed up or controlled by large shareholders. Unless BHP substantially revise their offer, RIO would appear to be safe from predators?

aussies not liking what is going on , if you care to read their press

i do not believe for one mo that RIO are safe ...... given that the chinese stake is effectively via the chinese gov't, it is a racing certainty that there will already have been talks at senior gov'mental level