Australian Rio Tinto shares rise after China stake approved

0 Comments | AFP, August, 2008

SYDNEY (AFP) — Australian shares in Rio Tinto hit a three-week high and closed up more than 1.0 percent on Monday, after the government approved a China-owned company's acquisition of a strategic stake in the miner.

Chinalco, with Alcoa Inc of the US, paid 14.1 billion US dollars for a 12 percent stake in Rio Tinto's London-listed shares, about 9.0 percent of the total group, in February.

The purchase was widely seen as a move to block BHP Billiton's unsolicited takeover of Rio, one of its major rivals in the export of lucrative iron ore.

On Sunday, Australian Treasurer Wayne Swan gave approval to Chinalco, or the Aluminium Corporation of China Ltd, to acquire up to 14.99 percent of Rio's London-listed arm, Rio Tinto PLC, or about 11 percent of the group....