Rio shareholders aim to derail Chinalco deal: report

Shareholders in Rio Tinto Ltd/Plc (RIO.AX) (RIO.L) are trying to overturn a controversial $19.5 billion investment in the mining group planned by Chinese state-owned Chinalco, a report said on Sunday.

Several of Rio's institutional shareholders are seeking legal advice about whether they can get a special resolution tabled to block the deal, Britain's Observer newspaper said.

Rio plans to use the cash from the deal, which needs shareholder and regulatory approval, to pay off some of its $38 billion of debt and to expand in China and elsewhere.

A Rio Tinto spokesman declined to comment on the report, calling it speculative, but said the company remained confident the deal offered value to shareholders.

"We are aware of the concerns of some shareholders and we've listened to them and explained the rationale behind the deal," the spokesman said. "But we believe it's the best way forward."

Last month, Chinalco, China's top aluminum maker, agreed to pay $12.3 billion for stakes in Rio's key iron ore, copper and aluminum assets and $7.2 billion for convertible notes that could potentially double its equity stake in Rio to 18 percent.

There was speculation that Australia might block the deal, fearing Beijing would have too much influence over a major export earner.

Copyright and Exemption Declaration :¢ÙAll articles, pictures and videos that are marked with "China Aluminum Network" on this website are copyright and belong to China Aluminium Network (www.alu.com.cn). When transshipment, any media, website or individual must list the source from "China Aluminium Network (www.alu.com.cn)". We seek legal actions against anyone that disobey this. ¢ÚArticles that marked as copy from others are for transferring more information to readers, do not represent or endorse their opinions or accuracy and reliability. When other media, website or individuals copy from our website, must keep the source. Anyone that changes the articles' sources will hold the responsibilities for copyright and law problems. We also seek legal actions against anyone that disobey this. ¢ÛIf any articles copied by our website concern the copyright and other problems, please contact us within one week.