Sunday, September 21, 2008

Market uncertainty adds to bid — BHP

Marius Kloppers, the chief executive of mining giant BHP Billiton, says his hostile $111 billion (£60.93 billion) bid for Rio Tinto is more attractive amid the current “uncertainty” in global financial markets.

“We view this transaction, if anything, as more attractive under these slightly more uncertain circumstances,” Kloppers said in Australia.
“It's a deal for all seasons. In difficult times like this, people value cost savings, synergies and cashflow benefits.”

Rio's shares this week traded at a record discount to BHP's takeover bid, signalling concern among investors that the world's largest mining acquisition may fail. It already faces formidable regulatory hurdles, with Brussels taking a closer look at the deal.

“The way the Rio Tinto share has traded compared to ours underscores our point quite well,” Kloppers said.

“We find it very difficult to see, at that 45% premium uplift we have offered Rio Tinto shareholders, that they can do that on a standalone basis.”

Kloppers said global demand for BHP resources was still “very, very robust”.

Article Courtesy :
http://www.thisislondon.co.uk/standard-business/article-23557637-details/Market+uncertainty+adds+to+bid+BHP/article.do

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