Rio Tinto Rejects Approach From BHP Billiton

LONDON -(Dow Jones)- Rio Tinto said Thursday that it notes the recent announcement from BHP Billiton involving a proposed acquisition of Rio Tinto under which each Rio Tinto share would be exchanged for three BHP Billiton shares.

The Boards of Rio Tinto have given the proposal careful consideration and concluded that it significantly undervalues Rio Tinto and its prospects.

Accordingly, the Boards have unanimously rejected the proposal as not being in the best interests of shareholders.

Rio Tinto said it will continue to focus on the implementation of its well articulated strategy, including integrating Alcan operations.