Blackstone Break-Up Bid for Rio Tinto Could Undo Alcan Merger

 |  Includes: AL (defunct), BX, RIO
by: FP Trading Desk

Shares of Rio Tinto Plc (RTP) were up nearly 2% in London trading and more in New York after the Daily Telegraph reported that The Blackstone Group (NYSE:BX) is putting together a group that includes a Chinese sovereign wealth fund to make a break-up bid for the miner.

A takeover offer from rival Anglo-Australian miner BHP Billiton Plc (NYSE:BHP) was rejected by Rio earlier this year.

The newspaper said Blackstone is already believed to have hired lawyers to make the offer, and is in discussions with bankers.

By breaking up Rio completely, the company’s merger with Canadian aluminum giant Alcan (AL (defunct)) would also have to be undone.