BHP CEO won't rule out adding cash to Rio bid: report
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Wed, 14 May 2008 02:26:03 GMT |
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SYDNEY (Reuters) - BHP Billiton Ltd/Plc was not ruling out adding cash to its all-share hostile offer for rival Rio Tinto Ltd/Plc , Chief Executive Marius Kloppers told broadcaster CNBC."We can't rule out anything," he responded when asked if he would add a cash component to the three-for-one share offer now on the table and worth $177 billion, speaking in an interview with the business channel in the United States.However, Kloppers said commodity price movements had made the offer more attractive recently."Since we made our bid I think oil prices have moved up substantially, other commodity prices which we have in our portfolio moved up substantially and since we are paying with our scrip, this means that the value of our offer has effectively increased," he said.BHP's Australian shares were up as much as 5 percent on Wednesday, fuelled by rumors of one or more Chinese entities buying a stake in the company."There's a rumor that the Chinese are trying to buy a stake in BHP," said the head of institutional sales at a brokerage who declined to be named.In February, Chinese aluminum group Chinalco staged a $14 billion raid on 12 percent of Rio Tinto's London-listed stock.BHP was 4.85 percent higher at A$48.00 by 0215 GMT (10:15 p.m. EDT), while Rio was 3.25 percent up at A$149.20.(Reporting by James Regan)
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