Market Currents

• Sunday, August 23, 2009

• 18:51 PM A possible sign tensions between Rio Tinto (RTP) and China are easing: Rio is in early-stage talks with Chinalco (ACH) over a possible bauxite and alumina deal. The two have adjacent bauxite deposits in Australia. (source) 1 Comment

• Monday, August 17, 2009

• 16:56 PM The slide in foreign direct investment drives Chinese stocks trading in the U.S. - including Chalco (ACH -7.3%), China Life Insurance (LFC -4.6%) and Yanzhou Coal Mining (YZC -6.3%) to their biggest decline as a group since March. Comment!

• Wednesday, July 8, 2009

• 12:41 PM The detention of four Rio Tinto (RTP) employees by Chinese authorities comes just as China grudgingly agrees to a 33% iron ore price cut for six months and after Rio scrapped its controversial deal with Chinalco (ACH). Coincidence, or payback? 1 Comment

• Thursday, July 2, 2009

• 07:50 AM Rio Tinto (RTP) saw strong demand for the U.K. part of its $15.2B rights offer, while results for its Australian offer are not yet available but are likely to be similar. Chinalco (ACH) took up its full entitlement. Comment!

• Tuesday, June 30, 2009

• 07:59 AM Chinalco (ACH) plans to participate in Rio Tinto's (RTP) $15.2B rights issue. Chinalco currently owns a 9% stake in Rio, and intends to subscribe to the rights issue to prevent a dilution of its holdings. Comment!

• Sunday, June 28, 2009

• 17:02 PM After rebuffing Xstrata's (XSRAF.PK) 'merger of equals' proposal last week, Anglo American (AAUK) wants to shore itself up. Sources say AAUK is in early talks about a possible investment from Chinalco (ACH), and that it's renewing its efforts to bring Sir John Parker in as its new chairman. Comment!

• Wednesday, June 24, 2009

• 10:25 AM Brazilian miner Vale (VALE) and Chinese aluminum producer Chinalco (ACH) are each mulling bids for Anglo American (AAUK) and/or Xstrata (XSRAF.PK) after Anglo rebuffed Xstrata's merger approach earlier this week. With stakes so high, analysts say things could heat up in a hurry. Comment!

• Monday, June 8, 2009

• 09:10 AM Rio Tinto (RTP) has run up a $1B bill as a result of its aborted deal with Chinalco (ACH). Rio owes at least $300M in adviser fees, a $195M break-up fee to Chinalco, and will have to pay more than $400M to the banks underwriting its rights issue. Comment!

• Thursday, June 4, 2009

• 15:46 PM The sudden collapse of the $19.5B Rio Tinto (RTP) / Chinalco (ACH) deal is a blow to M&A bankers and lawyers yearning for advisory fees and bragging rights at a time when deals are slim. Blackstone (BX) will move nine spots down in the rankings to 20. Comment!
• 09:58 AM As Chinalco (ACH) considers scrapping its $19.5B deal with Rio Tinto (RTP), Rio eyes a plan to raise up to $15B in a stock sale . Rio may also sell stakes in Australian ore mines to BHP Billiton (BHP). ACH +0.4%. RTP -8.4%. BHP -4.3%. Comment!
• 08:19 AM FT reports Chinalco (ACH) may walk away from its $19.5B deal with Rio Tinto (RTP), "a dramatic U-turn that will shock the market." Premarket: ACH +4.95%, RTP -5.0%. Comment!
• 07:27 AM Chinalco (ACH) may revise its $19.5B investment deal with Rio Tinto (RTP) ahead of a June 14 deadline in order to secure Australian government approval without further delays. Comment!

• Tuesday, June 2, 2009

• 08:17 AM Chinalco (ACH) delays its decision on whether to invest in the expansion of a Rio Tinto (RTP) refinery, waiting first to see how the Australian government lands on the broader $19.5B alliance between Chinalco and Rio. Comment!

• Tuesday, May 26, 2009

• 08:09 AM Rio Tinto's (RTP) $19.5B deal with Chinalco (ACH) is still 'evolving,' say officials. Rio chairman Jan du Plessis will spend the week speaking to shareholders in Australia, after meeting with major U.K. investors over the past two weeks. Comment!

• Thursday, May 21, 2009

• 09:24 AM Chinalco (ACH) is prepared to offer material concessions to its proposed $19.5B investment in Rio Tinto (RTP), a move aimed at securing approval from Australian regulators and hostile shareholders. ACH will limit its stake to 15%, from a previous 18%. RTP -0.9% premarket. Comment!

• Wednesday, May 20, 2009

• 11:44 AM Rio Tinto (RTP) reportedly tells Chinalco (ACH) their $19.5B investment deal may need to be reworked, depending on the response from Rio investors. RTP +7.4%. ACH -0.7%. Comment!