Rio Tinto Group, the world's second largest iron ore producer rose the most in almost two weeks in London trading after the Financial Times said ArcelorMittal may buy a stake to secure supplies of the steelmaking raw material.

FT citing unidentified people familiar with the matter reported that ArcelorMittal could afford to buy a similar size to the 9%, USD 14 billion shareholding acquired in February by Aluminum Corp of China and Alcoa Inc.

The paper also said that Mr Mittal has also considered buying iron ore assets should antitrust regulators demand their sale as a condition of a tie up between Rio and BHP.

Mr Charlie Dove Edwin an analyst at MF Global Securities based in London said that “It does not make any sense as ArcelorMittal will be just as influential by being a big customer as it would by owning a stake in the company.”

He added that “I do not think a deal like this could go through.''