BHP Billiton withdraws Rio Tinto bid
BHP Billiton has decided to withdraw its hostile bid for Rio Tinto, saying that it is no longer in the best interests of BHP Billiton's shareholders. BHP Billiton's bid for Rio Tinto was launched in November 2007 and initially valued the company at some $147 billion. However, Rio Tinto rejected the offer saying that it undervalued Rio Tinto. Don Argus, BHP Billiton's chairman, said: "We have concerns about the continued deterioration of near term global economic conditions, the lack of any certainty as to the time it will take for conditions to improve and the risks that these issues imply for shareholder value." Although BHP Billiton's offer had been cleared by US and Australian anti-trust authorities, the European Commission had said that it would have to divest some of its iron ore and coal assets. BHP Billiton said it intends to write off the costs of some $450 million incurred in progressing its offer over the past 18 months.
BHP Billiton has decided to withdraw its hostile bid for Rio Tinto, saying that it is no longer in the best interests of BHP Billiton's shareholders. BHP Billiton's bid for Rio Tinto was launched in November 2007 and initially valued the company at some $147 billion. However, Rio Tinto rejected the offer saying that it undervalued Rio Tinto. Don Argus, BHP Billiton's chairman, said: "We have concerns about the continued deterioration of near term global economic conditions, the lack of any certainty as to the time it will take for conditions to improve and the risks that these issues imply for shareholder value." Although BHP Billiton's offer had been cleared by US and Australian anti-trust authorities, the European Commission had said that it would have to divest some of its iron ore and coal assets. BHP Billiton said it intends to write off the costs of some $450 million incurred in progressing its offer over the past 18 months.
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