According to The Australian, Rio Tinto is now putting out feelers to institutional investors regarding replacing the controversial Chinalco bond issue with a capital raising, underwritten by Chinalco.
The change of heart seems to be a result of shareholder feedback, including the vocal UK institutional investors, and has brought Rio to the point of indicating to Chinalco that a change to parts of the $19.5 billion deal is necessary. Chinalco is thought to be resigned to some changes, though will not compromise on the arrangements giving it stakes in mining assets.
None of the report s claims have been confirmed by either party, but the share price jumped up $2.62 yesterday.
ASX Code: RIO
Chart from the Market Analyser.
To read the full article in The Australian, click here.
