Bank Of China Official: May Finance Chinalco-Rio Tinto Deal
February 10 2009 - 2:41AM
Dow Jones News
Bank of China Ltd. (3988.HK) may finance a potential investment
by Aluminum Corp. of China in Rio Tinto PLC (RTP), though no
decision has been made yet, an official at the bank who is familiar
with the matter said Tuesday.
"We've been involved in the negotiations," said the official,
who declined to be named.
Asked if Bank of China will finance the deal, the official told
Dow Jones Newswires: "It depends on how the situation develops. We
haven't yet made a final decision." The official declined to
elaborate.
Wang Zhaowen, a spokesman for the state-controlled Chinese
lender, said he is unaware of the matter.
Aluminum Corp. of China Deputy General Manager Lu Youqing said
Tuesday the company is in "intense" talks with Rio Tinto about a
potential deal and a seat on Rio's board.
Lu said both sides are discussing the size of the deal and the
financing involved, but declined to disclose details, or confirm
whether Aluminum Corp., known as Chinalco, is seeking a 15%-20%
stake in Rio Tinto.
Chinalco, China's biggest aluminum producer by output, became
Rio Tinto's biggest shareholder last year after it teamed up with
Alcoa Inc. (AA) to pay US$14.1 billion for a 9% stake in the Rio
Tinto group, which translates into a 12% stake in the listed
company.
-Victoria Ruan contributed to this story, Dow Jones Newswires;
8610 6588-5848; victoria.ruan@dowjones.com