« Reebok has been fined for ecologically harmful bracelets - “Silent harbor” for investors: oil and gold will rise in price »
Rio Tinto can manage too expensive
20 March 2008The profit of mining giant Rio Tinto continues to grow on a background of sharp rise in prices practically for all raw materials. However, experts mark, that this news cannot be named good for BHP Billiton to which should raise the offer on purchase of the competitor.
Moreover, while BHP waits for approval of antimonopoly bodies, Rio Tinto’ profit will continue to grow. And finally purchase of the competitor can manage to the mining giant in large sum.
Noe Rio Tinto costs much more than BHP offers, especially if to consider good opportunities for growth which now open before the company. So, under analysts’ forecasts, cost of Rio Tinto’s shares for I half-year 2007-2008 will grow on 50 %, while BHP’s shares will grow in price only on 12 %. However, next year financial parameters of BHP Billiton will, most likely, appear better, than Rio’s ones, but by that moment final cost of the transaction will be already named.
Chinese aluminium company Chinalco can also cause some troubles to BHP Billiton. The matter is that on February, 1st, Chinalco and American concern Alcoa Inc. have informed on purchase of share in the share capital of mining Rio Tinto. According to the terms of transaction, Singapore division Chinalco, company Shining Prospect Pte. Ltd. (SPPL), which is controlled by Alcoa, has got 12 % of Rio Tinto’s shares, estimated in 14,05 billion dollars.
BHP Billiton is the world’s largest mining company whereas Rio Tinto takes the third place in world mining sector.
- Rio Tinto: BHP underestimates us
- Merge of GDF and Suez will raise prices for the power companies
- Guilty in death street racers will be decapitated
- Asian metallurgists are searching for new investing projects
Leave a reply
You must be logged in to post a comment.
