By Sara Sjolin, MarketWatch
LONDON (MarketWatch) -- Shares of Rio Tinto PLC rallied in
London on Tuesday after the mining giant confirmed it rebuffed a
takeover proposal from Glencore PLC in July, while the FTSE 100
index declined amid a broader selloff in Europe.
Rio Tinto (RIO) jumped 4.8%, setting it on track for its biggest
leap in more than two years. The climb came after the miner said a
deal with Glencore wasn't in the best interests of shareholders,
and there had been no contact with the commodities producer and
trader since early August. The deal would have been one of the
biggest deals in mining history, creating a company worth about
$160 billion.
"No discussions are taking place with Glencore," Rio Tinto said
in a statement. Glencore declined to comment.
Glencore shares lost 1.6%. Other miners were rising, tracking
most metals prices higher. Anglo American PLC gained 2.2%, Randgold
Resources Ltd. climbed 1%, and Antofagasta PLC picked up 0.5%.
For the broader U.K. market, the FTSE 100 index slumped 0.6% to
6,523.94 falling alongside the other major benchmarks in Europe.
The weakness came after another reading on the German industrial
sector confirmed that the eurozone's largest economy is losing
steam.
Industrial production data for the U.K. showed factory outputs
slowed in August to 0.1% growth, driven by weaker exports and auto
makers shutting down during the summer.
Among major decliners in the FTSE, shares of International
Consolidated Airlines Group SA (ICAGY) , parent of British Airways,
slid 5.6% amid fears that an Ebola case in Madrid could cause
travel disruption with Spain. Shares of easyJet PLC lost 4.6%.
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