Scottish Widows:Welcomes Rio Tinto's Decision On Rights Issue
June 05 2009 - 5:07AM
Dow Jones News
Pension fund Scottish Widows Investment Partnership Friday said
it welcomed Rio Tinto PLC's (RTP) decision to opt for a $15.2
billion rights issue instead of pursuing a strategic tie-up with
Aluminum Corp. of China, or Chinalco.
"We welcome the board's decision to offer shares to existing
shareholders via a rights issue," SWIP's head of U.K. equities
Robert Waugh said in an emailed statement.
Waugh in February had said the fund, a Rio shareholder, was
disappointed that the Anglo-Australian miner had decided to
override preemption rights and issue attractive equity to one
shareholder without offering it to all shareholders.
Rio Tinto Friday formally abandoned that deal, which would have
given the Chinese group minority stakes in a suite of assets for
$12.3 billion and convertible bonds valued at $7.2 billion.
Company Web site: www.swip.com
-By Jeffrey Sparshott, Dow Jones Newswires; +44 (0)207 842 9347;
jeffrey.sparshott@dowjones.com