Mr Tom Albanese CEO of Rio Tinto, on Friday set out a robust defense of his company’s independent prospects as rumors swept the market that BHP Billiton was preparing to improve the terms of its takeover proposal next week.

Mr Albanese told the Financial Times in Perth that Rio’s prospects are superior to BHPB particularly in iron ore and aluminum, two commodities that are among the chief beneficiaries of record Chinese demand. He said “GBP 1,000 invested in Rio in 1997 would now be worth roughly GBP 9,000 but GBP 1,000 invested in BHP is now equal to GBP 7,800. Words are important but numbers are better.”

The daily Telegraph reported that key investors in Rio Tinto have given the mining group's management their backing Mr Albanese told The Daily Telegraph in Perth "I have spent a lot of time doing the rounds of shareholders and will continue to do so. We do ask What do you think? And they say You are doing exactly the right thing and we agree with it.

A Daily Telegraph analysis of Rio's shareholder base also shows that cumulatively the company's top 10 investors increased their stakes between November, when BHP's initial 3 to 1 swap proposal was made, and this week suggesting they concur with Mr Albanese's assessment that BHP's bid is a low-ball offer and that whilst they may favour a tie up in principle, they expect BHP to come back with a higher price.