Rio Tinto confirms it rejected Glencore takeover proposal  

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Argyle3 rdax
Argyle3 rdax

Mining giant Rio Tinto dismissed speculations that the company was locked in discussions with Glencore over a potential takeover bid.

Image credit: www.riotinto.com. Photographer: Christian Sprogoe PhotographyDate: 27 July 2009
Image credit: www.riotinto.com. Photographer: Christian Sprogoe PhotographyDate: 27 July 2009

The Rio Tinto board confirmed that it was contacted by Glencore in July to discuss a potential takeover bid, but said it rejected the offer following a consultation with its financial and legal advisers.

According to the media release by Rio, the rejection was communicated to Glencore in early August and there had been no further contact between the companies on that matter.

“Rio Tinto remains focused on the successful execution of its strategy, which the board of Rio Tinto is confident will continue to deliver significant and sustainable value for shareholders,” it says in the media release.

Adertisement

Rio Tinto chairman Jan du Plessis said that the company has made significant progress in refocusing and strengthening its business under the leadership of Sam Walsh and Chris Lynch, and would continue to work in the best interest of its shareholders.

“The board believes that the continued successful execution of Rio Tinto’s strategy will allow Rio Tinto to increase free cash flow significantly in the near term and materially increase returns to shareholders. Rio Tinto’s shareholders stand to benefit from the very considerable value that this will generate,” Mr du Plessis said.