BHP Makes Second Bid for Rio Tinto

Mega-miner BHP has made a second unsolicited offer for rival Rio Tinto, but the offer again has been rejected. BHP offered 3.4 shares of its stock for one share of Rio Tinto, up from its previous 3-for-1 proposal. Rio said the offer “undervalues” the company. BHP has not indicated whether it will sweeten its offer for a third try. A merger would represent one of the biggest takeovers in corporate history, valued at nearly $150 billion, and create a mining powerhouse that dwarfs its rivals, including Anglo-American, part owner of De Beers. BHP owns 80 percent of the Ekati Mine in Canada. Rio Tinto markets production from a variety of mines, including Diavik in Canada, Argyle in Australia, and Murowa in Zimbabwe. If the two merged, the resulting company would be the third-largest diamond producer and control 15–20 percent of the diamond market. The bid raised speculation that
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