Record fall for BHP as it sweetens Rio takeover offer

My Account
Logout

Create an Evening Standard Account

Use your social network

Save time by using your existing account to sign in to Evening Standard

We'll never share your information or post anything to your account without your permission

Welcome! Sign in here

Use your social network

Save time by using your existing account to sign in to Evening Standard

We'll never share your information or post anything to your account without your permission

Forgot your password ?

Registration

* indicates fields that are mandatory

Email *

Password *

Confirm Password *

First name *

Surname *

Postcode *

Country *

Mobile phone number

Username *

Gender *

Year of birth *

When you sign up...

You will have access to all our online competitions, discounted offers and can post comments on our site.

You will also receive The Weekender newsletter sent every Thursday - it’s full of fantastic offers and ideas for the weekend. You can update your email preferences in your account page when you log in.

Other newsletters and emails

Homes & Property Newsletter - Yes I want to receive the weekly email with all the latest news on property in the capital

Occasionally we would also like to send you relevant emails detailing specific offers either from ourselves or carefully selected partners. If you would prefer not to receive these then please tick the appropriate boxes below. We will never pass on your details.

I do not want to receive additional offers and information from the Evening Standard

I do not want to receive additional offers and information sent by Evening Standard on behalf of carefully selected partners

Terms and Conditions

* I have read, understood and agree to be bound by the terms and conditions of Evening Standard

Registration

Mail Sent for Registration Confirmation.

A confirmation email has been sent. Please activate your account by clicking on the activation link sent in your mail box.

After tumbling 8% in Sydney BHP shares in London fell 71p, or 4%, to 1526p. Rio's also fell because BHP's takeover offer is all in BHP shares rather than cash. BHP is offering 3.4 of its shares for every one of Rio's.

The new BHP offer is 13% more than its earlier three-for-one proposal to buy the third-biggest miner.

"This is our first and only offer," chief executive Marius Kloppers said. "Given the way that Rio is structured and the size of the company, a rival bid would have to be an all-cash offer for all of the share capital of both legs of Rio Tinto. We want full control of this company."

But his task has been complicated by Chinese aluminum giant Chinalco and partner Alcoa snatching a 9% stake in Rio last Friday. China, the world's biggest consumer of steel, fears a deal that would put 40% of the world's iron ore into one company.

Chinalco's next move remains unclear, with some reports saying it is preparing a counterbid but insiders pouring cold water on the idea.

The company's vice president, Lu Youqing, said: "We cannot comment until we study the BHP bid after the Chinese New Year holiday."

Kloppers would not say whether or not he had met with Chinalco and Alcoa since they took the Rio stake but said he could complete the takeover without their support.

BHP disappointed analysts with a 2.4% fall in net profit for the first half to $6.02 billion (£3.06 billion) thanks to a slump in the value of the greenback, BHP's pricing and reporting currency.

The market had been expecting about $6.3 billion.