LONDON (Thomson Financial) - Rio Tinto, the Anglo-Australian mining giant,
is poised to sell its 5 bln usd (2.5 bln stg) packaging business, possibly in
parts, to help defend itself against a takeover bid from BHP Billiton, The Daily
Telegraph reported without citing sources.
Rio identified the business, which it acquired in the 38 bln usd takeover of
Canadian aluminium miner Alcan last July, as one of 15 bln usd of potential
disposals in its defence against a 70 bln usd bid from BHP, the newspaper said.
Rio came close to selling the business to a trade buyer, thought to be US
company Sealed Air Corporation, late last year but the deal fell apart at the
11th hour, banking sources told The Daily Telegraph.
The company has appointed Morgan Stanley to kick start the sales process,
the newspaper said. It added that industry sources say the investment bank is
likely to advise breaking up the unit to make it easier for private equity
buyers to carry out a deal.
paul.sandle@thomson.com
ps/cmr
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