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BHP is boosted by China buzz
Bill Condie, Evening Standard9 Apr 2008
Shares in BHP Billiton rose more than 5% in Australia today on reports that China is poised to become a major shareholder.
Beijing is in the "early stages" of planning to buy a bigger holding in BHP than the 9% stake that state-owned Aluminium Corp of China, or Chinalco, recently bought in Rio Tinto.
Australian Prime Minister Kevin Rudd, who arrived in Beijing today, has said his nation is open to foreign investment.
China, the fastest-growing major economy, has been hurt by a threefold gain in commodity prices since 2002, prompting producers including Chinalco to make overseas acquisitions in resources groups.
News of China's plans comes as ArcelorMittal, the world's largest steelmaker, took aim at BHP and Rio for the massive windfall the resources boom has delivered them.
The company said that the two giant miners now have bigger profit margins on their iron-ore businesses than Microsoft has on software.
