Rio Tinto on Friday cancelled a pending deal with Chinese state-owned enterprise Aluminum Corporation of China Chinalco, preferring to launch a $15.2 billion rights issue and enter a joint venture with Australian miner BHP Billiton.
The size of the rights issue coupled with the fact that it is fully-underwritten in two jurisdictions has resulted in a role for a number of banks. Credit Suisse, J.P. Morgan Cazenove and Macquarie are joint global co-ordinators -- a selection which likely reflects both the willingness and ability of the said firms to provide underwriting. Deutsche Bank, Morgan Stanley, RBS and Société Générale are also playing a role.
Rio Tinto simultaneously announced a 5050 joint venture...
¬ Haymarket Media Limited. All rights reserved.
