BEIJING (XFN-ASIA) - China will join the bidding for Rio Tinto with an initial offer of about 200 bln usd, Beijing-based weekly China Business reported over the weekend.
Citing unnamed sources familiar with the matter, the newspaper said China's newly launched sovereign wealth fund - China Investment Company - will join hands with Baosteel, Shougang group, Angang group and some other firms controlled by the central government to make the bid.
'China will start its move very soon,' a source was quoted as saying.
No further information was provided.
Rio Tinto earlier this month rejected a merger proposal from BHP Billiton (NYSE:BHP) which valued Rio Tinto at about 142 bln usd.
BHP Billiton's takeover bid for Rio Tinto aroused concerns among China steelmakers, which fear a combined entity will have too much power over iron ore pricing
Big plans for Rio:
- RioTinto doesn't want to sell
China's eyes still on Rio: report
- BHP executives appear confident China will not try to block their bid for Rio, since such a move would ignite global fears that Chinese capital is being used for political purposes. Further, China has no experience in running a global mining company.