Filed under: Other issues, Deals, BHP Billiton Ltd ADR (BHP), Commodities

Alcoa and Aluminum Corp. of China, known as Chinalco, have jointly acquired a 12% stake in Rio Tinto, Alcoa announced Friday, in a statement.

The deal is estimated to be worth $14.05 billion, and represents the largest overseas investment by a Chinese company, Chinalco said. Alcoa Inc. (NYSE: AA) said it would contribute $1.2 billion to the investment.

Alcoa’s shares closed Friday up $1.19 to $34.15 on the news, as did Rio Tinto plc (ADR) (NYSE: RTP), which closed up $34.05 to $441.00.

Alcoa and Chinalco’s stake could very well obstruct a bid from Anglo-Australian mining giant BHP Billiton for Rio Tinto, the Associated Press reported. BHP Billiton Limited (ADR) (NYSE: BHP) closed up $6.15 to $73.73.

Continue reading Alcoa, Chinalco 12% interest in Rio Tinto seen as savvy move for both stakeholders

Permalink | Email this | Comments

Share This

This entry was posted on Saturday, February 2nd, 2008 at 8:48 pm and is filed under Stocks Money News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.