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Rio Tinto rejects BHP—again

$147.4 billion US isn’t enough to buy Rio Tinto, according to the company’s board of directors.

The mining and exploration company rejected a second bid—the largest-ever mining takeover offer—from rival BHP Billiton Ltd. BHP offered 3.4 shares for each of Rio Tinto’s, an increase from their previous informal three-for-one, all-share takeover proposal.

“BHP Billiton’s offer, while improved, still fails to recognize the underlying value of Rio Tinto’s quality assets and prospects,” Rio Tinto chairman Paul Skinner said in a statement. “Our plans are unchanged, and will remain so unless and until a proposal is made that fairly reflects the value of Rio Tinto.”

In late January, Aluminum Corp. of China and Alcoa Inc., bought a 10 per cent stake in Rio Tinto’s London-listed stock, which is equal to a nine per cent stake in the overall Rio Tinto group.

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