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Talk of raid by China lifts BHP
Bill Condie14 May 2008
Shares in mining giant BHP Billiton rose 88p, or 4%, to a record 2108p in London today on rumours that a Chinese buyer is building a stake.
The bid by BHP for rival Rio Tinto has alarmed Chinese companies, who fear that the combination of two of the world's biggest miners would push up the prices of raw materials.
In February, Chinese aluminum group Chinalco staged a $14 billion (£7.08 billion) raid on 12% of Rio Tinto's London-listed stock.
BHP's Aussie shares hit A$48.54 at one point today before falling back to A$48.06, up almost 5%.
Chief executive Marius Kloppers earlier suggested that he may add cash to the unwelcome bid for Rio. He told CNBC Television: "We can't rule out anything."
The three-for-one share offer that Rio says is inadequate is now worth $177 billion. Kloppers says his bid is already more attractive as commodity prices - particularly oil - have soared in recent months.
