RIO, BHP--BACK AT THE TABLE

摘要

Rio Tinto's deal with Chinalco, which was just days away from a decision from Australia's regulatory body, has been cancelled. Rio's proposed JV agreement with BHP Billiton is many miles from its destination. The implications of Rio's recent decisions are far-reaching and complex. How will Chinalco and China respond to being spurned? What will become of Rio Tinto's current management team based on the choices it's made- beginning with its purchase of Alcan? Will the joint venture (JV) with BHP be approved? These are only a handful among the many questions being raised. Just one month after Tom Albanese took over the helm at Rio in May 2007, Rio made its 38.1 billion dollars offer for Canadian aluminum producer, Alcan Inc., putting the company in debt as commodity prices began their fall. Then Albanese rejected BHP's takeover offer in 2008. In November 2007, Rio rejected a 135 billion US dollars three-for-one share offer by BHP on the grounds that it undervalued Rio and its prospects.