DJ Chinalco Decides To Take Up Rio Tinto Rights

Aluminum Corp. of China, or Chinalco, has reportedly decided to take up its share of the rights being offered by Rio Tinto Ltd. (RTP) in its US$15.2 billion raising.
Rio Tinto walked away from a planned US$19.5 billion alliance with Chinalco earlier this month, turning instead to a giant equity raising to ease its debt burden.

Chinalco is Rio's biggest shareholder with a 9.3% stake in the group and The Telegraph newspaper reported Saturday, citing unnamed people close to the Chinese group, that it had decided to take up its rights in the miner's current raising this week and maintain its stake.

Investors who hold Rio Tinto stock in Australia and the U.K. have until July 1 to subscribe for 21 shares for every 40 shares they hold at a price of GBP14 a share in the U.K. and A$28.29 a share in Australia.

Chinalco, which had previously said it was still considering whether or not to participate in the rights issue, was not immediately available for comment.

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