25 January
Beijing,
Dow Jones

BEIJING -(Dow Jones)- U.K.-based mining giant Rio Tinto PLC (RIO) Friday reiterated its contention that rival miner BHP Billiton Ltd.'s (BHP) takeover proposal is far below the company’s value.

Rio Tinto Chief Executive Tom Albanese made the comment to reporters during a visit to Beijing, but he declined to say whether he was in town to talk with China about any counterproposal.

Albanese travels often to China and said Friday he was in Beijing on a "regular visit" to meet with customers and unspecified officials.

Rio Tinto last year rejected a proposal from BHP to acquire it for US$114 billion in a three-for-one share offer, saying it was too low.

After BHP made its proposal, several news reports suggested China might join in some kind of counteroffer, but there has been no indication that any offer has developed.

Takeover authorities in the U.K. have given BHP until Feb. 6 to either launch a formal offer, or face a six-month delay before making another approach for Rio Tinto.

A person familiar with the situation has said BHP’s board will meet next week. BHP has declined to comment on this, however.

If the board meets to discuss the Rio Tinto matter, it could decide to make a formal bid under the original terms, to raise it or abandon the proposal.

Albanese said Rio Tinto’s operations will continue to benefit from strong demand from China for commodities, including iron ore, copper and aluminum. He was responding to a question about how the subprime mortgage crisis might affect Rio Tinto’s business.

While the subprime crisis has stirred up volatility in global financial markets, a weaker dollar may boost U.S. export growth, which would, in turn, benefit Rio Tinto’s business, Albanese said.

Albanese was asked about ongoing international talks between iron ore producers and customers about this year’s price levels. He declined to comment on any progress but reiterated the mining companies' contention that the price should reflect all market factors including transportation costs.