Post by Catdaddy on Nov 19, 2007 20:54:35 GMT -5
BHP chief says case for Rio bid is very compelling
www.reuters.com/article/marketsNews/idINSEU00019220071120?rpc=44
Mon Nov 19, 2007 7:38pm
SEOUL, Nov 20 (Reuters) - BHP Billiton Ltd's (BHP.AX: Quote, Profile, Research) (BHP.L: Quote, Profile, Research) chief executive Marius Kloppers said on Tuesday the case for his firm's rejected $140 billion takeover offer for Rio Tinto (RIO.AX: Quote, Profile, Research) (RIO.L: Quote, Profile, Research) was very compelling though much work remained to be done.
"We think that the overlap of the operations, the fact that we have a solution on how to put the companies together, and the benefits (of such a move) is a very good proposition," the mining giant's new chief executive, Marius Kloppers, told Reuters during a visit to the South Korean capital.
"We have a very compelling value proposition."
Kloppers is continent-hopping to press the case to big investors and customers for combining the companies.
He started a Japan-South Korea-China tour on Monday, stopping in Tokyo first. He was scheduled to visit BHP's South Korean customers, including POSCO (005490.KS: Quote, Profile, Research) and Hyundai Steel (004020.KS: Quote, Profile, Research), on Tuesday amid mounting concerns over the consequences of such a combination on iron ore prices. (Reporting by Kang Shinhye and Marie-France Han; Editing by Keiron Henderson)
© Reuters2007All rights reserved
UPDATE 1-BHP chief says case for Rio bid is very compelling
www.reuters.com/article/marketsNews/idINSEO25208320071120?rpc=44&pageNumber=2
Mon Nov 19, 2007 8:52pm EST
By Kang Shinhye and Marie-France Han
SEOUL, Nov 20 (Reuters) - BHP Billiton Ltd (BHP.AX: Quote, Profile, Research) (BHP.L: Quote, Profile, Research) chief executive Marius Kloppers said on Tuesday the case for his firm's rejected $140 billion takeover offer for Rio Tinto (RIO.AX: Quote, Profile, Research) (RIO.L: Quote, Profile, Research) was very compelling, though much work remained to be done.
The mining giant's new chief executive also told Reuters the mega-merger would benefit shareholders and clients.
"We think that this is a good proposal for shareholders and customers, but we have a lot of work to go through." Kloppers said during a visit to the South Korean capital.
BHP said on Nov. 8 that it had approached third-ranked Rio with a 3-for-1 share offer, but Rio was quick to rebuff the offer as too low.
A marriage of BHP and Rio would create the world's biggest mining force capable of controlling the global flow of huge amounts of iron ore, copper, coal and other commodities for industrial use.
"We think that the overlap of the operations, the fact that we have a solution on how to put the companies together, and the benefits (of such a move) is a very good proposition," he added.
"We have a very compelling value proposition."
Kloppers is continent-hopping to press the case to big investors and customers for combining the companies.
He started a Japan-South Korea-China tour on Monday, stopping in Tokyo first. He was scheduled to visit BHP's South Korean customers, including POSCO (005490.KS: Quote, Profile, Research) and Hyundai Steel (004020.KS: Quote, Profile, Research), on Tuesday amid mounting concerns over the consequences of the proposed combination on iron ore prices.
Earlier this month, POSCO, the world's fourth-biggest steel maker, reacted cautiously to news of the proposed merger.
"The combination of two big miners will mean stronger selling power," an official told Reuters. "It will definitely be bad news for consumers including POSCO."
A group of Japanese steelmakers on Monday also took issue with the proposed merger of BHP and Rio, saying such a combination would hamper market price mechanisms.
"We are worried that such a merger would impede a healthy market price mechanism. We are opposed to that," Hajime Bada, chairman of the Japan Iron and Steel Federation and president of JFE Steel Corp (5411.T: Quote, Profile, Research), told a news conference on Monday.
In China, home to the world's biggest steel industry, a state newspaper on Tuesday reported steel firms feared a merger of the the two mining giants would create "an even bigger monopoly".
Kloppers has said a merger with Rio could mean $3.7 billion in annual savings after seven years through synergies in iron ore, coal and other activities. (Reporting by Kang Shinhye and Marie-France Han; Editing by Keiron Henderson)
www.reuters.com/article/marketsNews/idINSEU00019220071120?rpc=44
Mon Nov 19, 2007 7:38pm
SEOUL, Nov 20 (Reuters) - BHP Billiton Ltd's (BHP.AX: Quote, Profile, Research) (BHP.L: Quote, Profile, Research) chief executive Marius Kloppers said on Tuesday the case for his firm's rejected $140 billion takeover offer for Rio Tinto (RIO.AX: Quote, Profile, Research) (RIO.L: Quote, Profile, Research) was very compelling though much work remained to be done.
"We think that the overlap of the operations, the fact that we have a solution on how to put the companies together, and the benefits (of such a move) is a very good proposition," the mining giant's new chief executive, Marius Kloppers, told Reuters during a visit to the South Korean capital.
"We have a very compelling value proposition."
Kloppers is continent-hopping to press the case to big investors and customers for combining the companies.
He started a Japan-South Korea-China tour on Monday, stopping in Tokyo first. He was scheduled to visit BHP's South Korean customers, including POSCO (005490.KS: Quote, Profile, Research) and Hyundai Steel (004020.KS: Quote, Profile, Research), on Tuesday amid mounting concerns over the consequences of such a combination on iron ore prices. (Reporting by Kang Shinhye and Marie-France Han; Editing by Keiron Henderson)
© Reuters2007All rights reserved
UPDATE 1-BHP chief says case for Rio bid is very compelling
www.reuters.com/article/marketsNews/idINSEO25208320071120?rpc=44&pageNumber=2
Mon Nov 19, 2007 8:52pm EST
By Kang Shinhye and Marie-France Han
SEOUL, Nov 20 (Reuters) - BHP Billiton Ltd (BHP.AX: Quote, Profile, Research) (BHP.L: Quote, Profile, Research) chief executive Marius Kloppers said on Tuesday the case for his firm's rejected $140 billion takeover offer for Rio Tinto (RIO.AX: Quote, Profile, Research) (RIO.L: Quote, Profile, Research) was very compelling, though much work remained to be done.
The mining giant's new chief executive also told Reuters the mega-merger would benefit shareholders and clients.
"We think that this is a good proposal for shareholders and customers, but we have a lot of work to go through." Kloppers said during a visit to the South Korean capital.
BHP said on Nov. 8 that it had approached third-ranked Rio with a 3-for-1 share offer, but Rio was quick to rebuff the offer as too low.
A marriage of BHP and Rio would create the world's biggest mining force capable of controlling the global flow of huge amounts of iron ore, copper, coal and other commodities for industrial use.
"We think that the overlap of the operations, the fact that we have a solution on how to put the companies together, and the benefits (of such a move) is a very good proposition," he added.
"We have a very compelling value proposition."
Kloppers is continent-hopping to press the case to big investors and customers for combining the companies.
He started a Japan-South Korea-China tour on Monday, stopping in Tokyo first. He was scheduled to visit BHP's South Korean customers, including POSCO (005490.KS: Quote, Profile, Research) and Hyundai Steel (004020.KS: Quote, Profile, Research), on Tuesday amid mounting concerns over the consequences of the proposed combination on iron ore prices.
Earlier this month, POSCO, the world's fourth-biggest steel maker, reacted cautiously to news of the proposed merger.
"The combination of two big miners will mean stronger selling power," an official told Reuters. "It will definitely be bad news for consumers including POSCO."
A group of Japanese steelmakers on Monday also took issue with the proposed merger of BHP and Rio, saying such a combination would hamper market price mechanisms.
"We are worried that such a merger would impede a healthy market price mechanism. We are opposed to that," Hajime Bada, chairman of the Japan Iron and Steel Federation and president of JFE Steel Corp (5411.T: Quote, Profile, Research), told a news conference on Monday.
In China, home to the world's biggest steel industry, a state newspaper on Tuesday reported steel firms feared a merger of the the two mining giants would create "an even bigger monopoly".
Kloppers has said a merger with Rio could mean $3.7 billion in annual savings after seven years through synergies in iron ore, coal and other activities. (Reporting by Kang Shinhye and Marie-France Han; Editing by Keiron Henderson)
