Australia to assess China's Rio Tinto bid: PM

0 Comments | AFP, February, 2008

SYDNEY (AFP) — China's state-owned aluminium giant Chinalco's application to move to a 19.9 percent stake in Rio Tinto would be assessed on the basis of national interest, Australia's prime minister said Tuesday.

"The reason we have Foreign Investment Review Board (FIRB) guidelines and a foreign takeovers act is to ensure that Australia's national interest is always met," Kevin Rudd told a news conference in Canberra.

"Those national guidelines are there -- they will be applied by the treasurer in relation to Chinalco."

Chinalco said Monday it had voluntarily made a submission to the FIRB to move to a 19.9 percent holding in Rio Tinto, the maximum level permitted before a takeover offer must be made under Australian takeover law.

But, the Chinese...