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Mining giant Rio Tinto's $15.2 billion (£9.2 billion) rights issue has received strong backing from London shareholders.
It revealed today that 96.7% of UK investors bought the new shares, raising around £7.1 billion, with the results of the Australian portion of the offer due to be revealed tonight.
Chinalco, the Chinese aluminium producer with which Rio had planned to merge earlier this year and now its largest shareholder, took up all its rights, suggesting a deal could still be on the cards. Rio was forced to repair its balance sheet or look for a takeover bid following its debt-financed takeover of Alcan. Analysts said the high take-up of the rights issued signalled strong support for the company staying independent.
London shareholders were offered the right to buy 21 shares for every 40 existing ones they owned at a price of 1400p. Rio shares closed at 2158p last night.
Chinalco said: "This was an economically rational decision as it prevented dilution of ownership in Rio. Chinalco will, as the current largest single shareholder, continue to monitor developments at Rio."
