BHP studies its next steps in bid for Rio Tinto takeover

0 Comments | Deseret News (Salt Lake City), Dec 13, 2007 | by Bloomberg News

BHP Billiton Ltd., the world's biggest mining company, is studying the "next steps" in its takeover approach for Rio Tinto Group, which continues to reject talks on the $138 billion proposal.

BHP chief executive officer Marius Kloppers is "mystified" as to why Rio's board hasn't agreed to discuss the offer, he told reporters Wednesday on a conference call in London. He declined to expand on BHP's next move.

Rio, the world's third-largest miner, asked U.K. regulators Tuesday to force Melbourne-based BHP to formalize its position. BHP wants to create a company that would be the biggest producer of energy coal, copper and aluminum, an effort that Rio CEO Tom Albanese said is "dead in the water."

BHP is in early stage talks with the U.K. Takeover Panel and has yet to make a submission on any bid, Kloppers said. Rio's request to the panel will set a deadline for BHP to make an offer, and it may be forced to desist from any approach for six months unless it accedes to the panel's request, Rio said Tuesday.