Monday, March 24, 2008; Posted: 07:36 AM
Rio Tinto is defending itself against a hostile bid from BHP Billiton Ltd. (BHP) and has drawn attention to its planned selloff of $10 billion of assets in 2008 to pay down debt and refocus the company on operations that produce the most revenue.
The Daily Telegraph, citing banking sources, said Rio Tinto came close to selling its Rio Tinto Alcan Packaging division in its entirety to a U.S. company late last year, but that deal fell apart as the credit crunch kicked in.
Rio Tinto has appointed Morgan Stanley (MS) to find a new buyer, the newspaper said. The investment bank is likely to break up the division, acquired with last year's takeover of Canada's Alcan Inc., to make it easier for private equity to execute a deal, the newspaper said.
Rio Tinto this year announced the sales of a U.S. gold mine and a U.S. silver, gold, zinc and lead mine. The company is also considering sales of Rio Tinto Energy America coal operations, Rio Tinto Minerals' talc business, Rio Tinto Alcan Engineered Products, the Northparkes copper mine in Australia and uranium assets in the U.S. and Australia.
Rio Tinto couldn't immediately be reached for comment.
Newspaper Web site: www.telegraph.co.uk
-London Bureau, Dow Jones Newswires; +44 20 7842 9320
(END) Dow Jones Newswires
03-24-08 0736ET
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