BHP Billiton says knows nothing about China stake rumours
BHP Billiton on Thursday said it knew nothing about any move from Chinese authorities to acquire a multi-billion dollar stake in the world's largest miner.
By Agencies |
SYDNEY: BHP Billiton on Thursday said it knew nothing about any move from Chinese authorities to acquire a multi-billion dollar stake in the world's largest miner.
Responding to a query from the Australian Securities Exchange, BHP said: "BHP Billiton is not aware of a proposed acquisition by Chinese authorities of a substantial stake in BHP Billiton."
BHP's shares soared more than five per cent on Wednesday as rumours about China's interest swept the market following a report that a share raid was imminent.
The Australian newspaper, citing sources in Beijing, said Wednesday that China was working on a plan for a state-owned entity, possibly the Baosteel steel mill, to launch a share raid on BHP Billiton.
The move was aimed at intervening in BHP's proposed $147.4 billion takeover of rival Rio Tinto, the newspaper reported.
China has expressed concern the mega-merger would create a behemoth with too much power over commodity prices, and in February state-owned Chinalco joined with US firm Alcoa to buy $14 billion worth of Rio shares.
The Australian reported that China hoped to snap up more than nine percent of BHP.
BHP shares were little changed following the statement, down one cent at $41.90 about midday in a lower overall market.
Responding to a query from the Australian Securities Exchange, BHP said: "BHP Billiton is not aware of a proposed acquisition by Chinese authorities of a substantial stake in BHP Billiton."
BHP's shares soared more than five per cent on Wednesday as rumours about China's interest swept the market following a report that a share raid was imminent.
The Australian newspaper, citing sources in Beijing, said Wednesday that China was working on a plan for a state-owned entity, possibly the Baosteel steel mill, to launch a share raid on BHP Billiton.
The move was aimed at intervening in BHP's proposed $147.4 billion takeover of rival Rio Tinto, the newspaper reported.
China has expressed concern the mega-merger would create a behemoth with too much power over commodity prices, and in February state-owned Chinalco joined with US firm Alcoa to buy $14 billion worth of Rio shares.
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The Australian reported that China hoped to snap up more than nine percent of BHP.
BHP shares were little changed following the statement, down one cent at $41.90 about midday in a lower overall market.
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