Sector movers: Strategic stake boosts Rio
The prospect of a bidding war for has been ignited by news that two mining companies have taken a 12% stake in , the company being stalked by BHP Billiton.
The stake has been acquired by Shining Prospect, a Singapore based company wholly owned by Chinese metals and mining company Chinalco. The American company, Alcoa, has committed U$1.2bn into Shining Prospect through a convertible instrument.
Chinalco and Alcoa have both maintained that they do not intend at present to make a full offer for Rio Tinto, but both have reserved the right to do so within the next six months in the event that any such offer would have the agreement of the Rio board, or in the event that a company other than BHP Billiton makes a play for Rio.
The companies said they would also consider a bid if Rio Tinto declares its intention to make a substantial acquisition or disposal, or any material recapitalisation other than a share buback.
Medical diagnostic firm Mediwatch leads the healthcare sector lower after it confirmed today that it is no longer in takeover talks.
The company's share price shot up in the middle of January as rumours leaked out of a takeover approach.
Top performing sectors so far today
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Aeronautics and Defence NULL 0.00%
