Rio Tinto, the London-headquartered dual-listed Anglo-Australian mining group, has rejected an all-share takeover approach from rival BHP Billiton.
Under the proposal, each Rio Tinto share would be exchanged for three BHP Billiton shares.
The Boards of Rio Tinto state that they have “given the proposal careful consideration and concluded that it significantly undervalues Rio Tinto and its prospects. Accordingly, the Boards have unanimously rejected the proposal as not being in the best interests of shareholders.”
Shares in £42.34bn capitalised Rio Tinto have risen by at least 20.96% to 5,246p per share.