Rio Tinto shares retreat after BHP takeover rumour frenzy

0 Comments | AFP, May, 2007

SYDNEY (AFP) — Shares in Anglo-Australian mining giant Rio Tinto fell sharply Thursday as speculation subsided about a possible takeover offer from larger rival BHP Billiton that created a market frenzy Wednesday.

Rio Tinto's Australian-listed shares closed down 3.62 dollars (3.01 US) or 3.79 percent at 91.98 in a rising overall market, after jumping 11.1 percent to hit an record intra-day high of 99.69 dollars Wednesday as the rumours spread.

Rio Tinto told the Australian Stock Exchange Wednesday that it was unaware of any takeover approach from BHP Billiton but its London-listed shares still rose 6.23 percent overnight as the rumours lifted the entire mining sector.

BHP Billiton has refused to comment on the market speculation. Its shares closed down 13...