This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.

You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/business/7229516.stm

The article has changed 6 times. There is an RSS feed of changes available.

Version 0 Version 1
BHP makes takeover offer for Rio BHP makes takeover offer for Rio
(20 minutes later)
Anglo-Australian mining giant BHP Billiton has said it has formalised a takeover bid to buy its rival Rio Tinto in a deal worth about $147bn (£74.8bn).Anglo-Australian mining giant BHP Billiton has said it has formalised a takeover bid to buy its rival Rio Tinto in a deal worth about $147bn (£74.8bn).
Under the terms of the deal, BHP will swap 3.4 of its shares for every Rio share. BHP sweetened its original bid approach, offering 3.4 of its shares for every Rio Tinto share - better than the previous three-for-one offer.
This is a better offer than the three- to-one share offer previously on the table, which had been spurned by Rio. Rio had spurned an offer at that level, saying it undervalued the firm.
BHP first approached Rio last November, seeking to create a business with a third of the world's iron-ore market. A tie-up would create a business with a third of the world's iron-ore market, but a deal could still face resistance.
"The offer should be enough to get BHP talking to Rio," said Rob Patterson, managing director of fund manager Argo Investments.
"We think to raise the offer to that degree probably makes sense."
Obstacles
Last week, Chinese mining firm Chinalco teamed up with US aluminium giant Alcoa to buy a 12% stake in Rio Tinto for $14.05bn.
Analysts said the move, the largest Chinese investment overseas, was an attempt to block BHP's efforts to buy Rio.
Alcoa and Chinalco said at the time they did not intend to make an offer for the whole of Rio Tinto.
But they said they reserved the right to do so if Rio received a firm bid from a third party.