Chalco¡¯s intention to purchase flags Rio Tinto¡¯s stock

Yesterday, China Aluminium Group disclosed the intension to increase position of Rio Tinto stake(ASX:RIO) which was therefore impassioned to fluctuate dramatically. This is another flagging after BHP Billiton (ASX:BHP) gave up its hostile purchasing.

Lv Youqing, President of Chalco said that Chalco was considering to increase the position of Rio Tinto listed in London to 14.99%, about when, however, was not disclosed in order not to affect the stock.

The slump shrunk market value of Rio Tinto to 36 billion dollars, which is not only lower than liabilities, but a little part of the 193 billion dollars highest valuation of purchasing plan.

An Australian media declared Rio Tinto to be the last large mining company to accept the fact that China economy and the world commodity market was in trouble.

Months ago, Marius Kloppers, CEO of BHP considered the possibility of losing in purchasing Rio Tinto (ASX:RIO), ¡°We did detailed analysis, but not thorough enough. Lots can change during 18 months.¡± He said.

Actually, there are many others including Japan, China and European clients that hate the idea of purchasing which will do harm to value of many companies.

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