Doubts over deal hit Rio Tinto shares
18-03-2009
Fears that a US$19.5-billion deal with a major mainland company could fail has sent debt-troubled Rio Tinto's share price tumbling almost nine percent. Australian regulators earlier this week deferred making a decision on whether the Aluminum Corporation of China, or Chinalco, should be able to double its stake in the Anglo-Australian miner. This prompted some minority lawmakers to publicly oppose the deal, saying it was selling off assets that should stay Australian. The Foreign Investment Review Board said it would investigate the plan for another 90 days before making a recommendation to Treasurer Wayne Swan. He has consistently said he will only approve the deal if it is in the national interest. The plan also needs shareholder approval.
