The Basic Materials Soap Opera Gets More Interesting

Rio Tinto (RTP) is surging after Alcoa (AA) and Chinalco (Aluminum Corp of China) take a 12% stake in RTP. BHP Billiton (BHP) has an open offer for RTP which RTP continues to rebuff.

In the meantime, Freeport-McMoRan (FCX) looks like the ugly girl sitting in a chair in the corner at the high school dance. As this soap opera plays out, don't be surprised if RTP's jilting of BHP overtures results in BHP going after FCX.

Disclosure: long shares of FCX.