Legal & General: Pleased Rio Tinto Pursuing A Rights Issue
June 05 2009 - 5:53AM
Dow Jones News
Legal & General Investment Management Friday said it was
pleased Rio Tinto PLC (RTP) is pursuing a conventional rights issue
for $15.2 billion instead of a strategic tie-up with Aluminum Corp.
of China, or Chinalco.
"We are pleased that Rio Tinto have decided to pursue a
conventional rights issue; it is important that companies of
significant standing choose to honor shareholder rights," the fund
said in a statement.
L&G, Rio's biggest institutional shareholder, in February
objected to the proposed Chinalco deal because it violated
preemption rights - in this case the ability to buy into a
convertible bond on the same terms as Chinalco.
Rio Tinto Friday formally abandoned the Chinalco 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.lgim.co.uk
-By Jeffrey Sparshott, Dow Jones Newswires; +44 (0)207 842 9347;
jeffrey.sparshott@dowjones.com