BUSINESS
03/28/2008 02:45 am ET Updated May 25, 2011

Rio Rejects BHP Billiton's $147 Billion Hostile Bid

Rio Tinto Group, the world's third- largest mining company, rejected a sweetened $147 billion offer from BHP Billiton Ltd. because it ``significantly'' undervalues the iron-ore and copper producer.

BHP's bid doesn't ``recognize the underlying value'' of London-based Rio's assets and prospects, Rio Chairman Paul Skinner said today in a statement. ``Our plans are unchanged, and will remain so unless a proposal is made that fully reflects the value of Rio.''

BHP Chief Executive Officer Marius Kloppers raised the bid by 13 percent five days after Aluminum Corp. of China, the nation's biggest aluminum company, bought a stake in Rio to block the takeover. The combination of BHP and Rio would create the world's biggest producer of copper and vie with Brazil's Cia. Vale do Rio Doce as the largest supplier of iron ore.

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