Rio Tinto Takeover Update

As it turns out, I’m correct in being cautious about the Blackstone rumour. In this morning’s The Australian:

BLACKSTONE Group said overnight it isn’t involved in a bid for mining giant Rio Tinto, which has already rejected a $US150 billion ($A170 billion) bid from rival BHP Billiton.

The US private equity company was responding to an earlier report in London’s The Daily Telegraph newspaper that it was in the process of assembling a consortium to launch a bid.

“Blackstone confirms that it is not involved in this transaction in either an investment or advisory role,” the company said in a statement.

Meanwhile according to Reuters:

The Shanghai Stock Exchange said on Monday that the shares of China’s biggest steelmaker, Baosteel, would be suspended on Tuesday without giving a reason.

The stock exchange said on its website that shares would resume trading again on Wednesday.

So after all, something is indeed brewing, even though it is not what we think it is.

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