Following is a chronology of the bid.
October 5th 2007 - Rio Tinto declines BHP Bid rumors
Rio Tinto has quashed market speculation it had received a takeover offer from its larger rival BHP Billiton after its share price surged to a record amid market rumors of an approach. Rio Tinto shares closed at AUD 5.8 higher or 6.5% to AUD 95.5, after hitting a record AUD 99.69 in afternoon trade on Wednesday.
November 8th 2007- BHPB makes big bang bid for Rio
Coinciding with Indian festival of lights and crackers, BHP Billiton has made Big Bang by launching a massive AUD 272.05 billion takeover bid for its Anglo Australian mining rival Rio Tinto in what could be one of the world's biggest merger deals
November 9th 2007 - Makes Chinese steel makers jittery
China’s steel industry was less than thrilled to wake up yesterday and find it might soon be wrestling with two giant iron ore suppliers rather than three in the tightest iron ore market the modern world has seen.
November 10th 2007 - Citigroup to give USD 70 billion to BHPB
Financial Times reported that BHP Billiton has arranged a USD 70 billion financing package through Citigroup to strengthen its USD 140 billion takeover approach for rival miner Rio Tinto Group.
November 10th 2007 - Chinese bank builds stake in Rio
FT reported that an arm of the Chinese state has taken a secret stake in Rio Tinto. As per report the stake is bought in the past week by China Development Bank, which is backed by the Communist government in China. As per report, the stake is believed to be less than 1%.
November 12th 2007 – BHPB highlights value of proposal
BHPB outline its takeover plan, arguing that merger would result in USD 3.7 billion in synergies in seven years and promises to hand back USD 30 billion to shareholders via a share buyback if the deal goes through. Rio said that the bid remained out of the ballpark
November 12th 2007 - Makes Japanese and Korean uncomfortable
It was reported that Japanese and Korean steel makers are shuddering at the prospect of a BHP Billiton Rio Tinto merger, even as they brace for separate mauling from the dominant Australian iron ore and coking
November 15th 2007 - UBS takes 5% stake in Rio Tinto
The takeover war between mining giants BHP Billiton and Rio Tinto continues with news of Swiss bank UBS and its affiliates grabbing a 5% stake in Rio. BHPB talked it up as hedge fund buying, while the Rio dismissed the substantial shareholder notice as reflecting previous purchases.
November 15th 2007 – CDB denies buying Rio stake
China Development Bank has denied a report in German daily Handelsblatt that it is involved in buying a stake in mining company Rio Tinto PLC. Ms Yang Hua, a spokeswoman at the Chinese policy bank said in response to the report said that "There's is no such thing.”
November 16th 2007 - CVRD welcomes the idea
It is reported that Brazilian mining giant and world’s biggest producer of iron ore CVRD sees a possible takeover of rival Rio Tinto by world's biggest miner BHP Billiton as a good thing for the industry that will not threaten CVRD's dominance in the iron ore market.
November 17th 2007 - Merger not to effect ArcelorMittal
Times recently reported that Mr LN Mittal president & CEO of ArcelorMittal said that the prospect of a merger between Rio Tinto and BHP Billiton would not affect his company and that any merger is an endorsement for ArcelorMittal’s strategy of vertical integration.
November 17th 2007 - S&P put BHPB on credit watch
Despite rejection from Rio’s board, Standard & Poor’s said that it has placed BHPB on credit watch with negative implications amid the prospect of a revised bid. S&P placed BHP’s A-plus/A-1 ratings on credit watch with negative implication while putting Rio Tinto’s BBB+/A-2 credit rating and associated debt on watch with positive implications.
November 18th 2007- BHP claims support from Rio shareholders
BHP Billiton claimed that shareholders were supportive of its proposed mining mega-merger with Rio Tinto. Mr Marius Kloppers CEO of BHPB head, while speaking in South Africa, which he is visiting as part of a global road show to sell the group’s proposed merger plans, said that the investors in both Rio and BHP he had met so far had been broadly supportive of the rationale behind the deal.
November 18th 2007 - IISI calls for strict review
The International Iron and Steel Institute yesterday has issued a formal request that all relevant competition authorities review the proposed alliance between BHP and Rio Tinto.
November 20th 2007 - JISF slams the move
Japan Iron and Steel Federation has come out in open against BHPB’s move to merge with Rio TintoMr Hajime Bada chairman of the Japan Iron and Steel Federation told a news conference that a melding of two of the largest raw materials suppliers, BHP Billiton PLC and Rio Tinto PLC, is undesirable for industrial competition and pricing.
November 20th 2007– POSCO and Hyundai show concerns
It is reported that the two biggest South Korean customers for BHP Billiton's iron ore, POSCO and Hyundai Steel said that they do not approve of its merger plans with Rio Tinto.
November 20th 2007 –CISA joins the opposition group
China Iron and Steel Association published a commentary in which it judged that the merger would create an even bigger monopoly. CISA said “The merger is not good for global steel companies. Iron ore production over concentration will not be helpful for the long term development of normal trade.”
November 21st 2007 - Mr Kiernan voices support
It is reported that mining entrepreneur Mr Michael Kiernan has come out in support of BHP Billiton's bid for Rio Tinto. Mr Kiernan said that a combined BHP and Rio would create more stability in international commodity prices, rather than pushing them higher.
November 21st 2007 – UBS and Deutsche Bank join the battle
Reuters reported that UBS have joined the army of advisers lined up by BHP Billiton for its takeover bid for Rio Tinto and Deutsche Bank has been engaged by Rio to ward off the threat.
November 26th 2007 - Rio rebuffs BHPB offer as undervalued
Rio Tinto Ltd Rio laid out new justifications for rejecting a USD 150 billion takeover bid from rival BHP Billiton Ltd. Mr Tom Albanese CEO of Rio Tinto said that the full value of the company's assets was yet to be reflected in the market.
November 26th 2007 - Chinese steelmakers deny bid for Rio
China Iron & Steel Association and officials from first tier Chinese steelmakers said they are unaware of the report about their participation with China Investment Corp to make a rival bid for the world's third largest miner.
November 27th 2007 - German steelmakers oppose the move
German steelmakers urged Brussels on Tuesday to block miner BHP Billiton's planned takeover of rival Rio Tinto that would create a USD 350 billion plus industry giant. Mr Dieter Ameling president of German Steel Federation said that "This merger between the iron ore market's world number two and three would further raise the pressure on iron ore prices. It would limit the steel industry's access to the raw material. That kind of market dominance doesn't allow practically any leeway during price negotiations.”
November 28th 2007 –BHPB confident of its logic
BHP Billiton said that most investors and many customers see the logic in its offer for Rio Tinto Group and that it is unlikely to be matched by any rival. Mr Marius Kloppers CEO of BHPB in a speech to shareholders in Adelaide said that “The bottom line here is simple. These two companies are worth more together than apart. It is not a question of us needing them or them needing us. The proposed combination would cut costs and deliver more raw materials faster to customers to feed surging demand from China and India.”
November 28th 2007 - Seven banks funding BHPB
As per media reports, 7 banks are financing BHP Billiton's bid for rival Rio Tinto with a loan of up to USD 70 billion rather than 5 banks as per earlier reports. The financing is being led by coordinator Goldman Sachs and mandated lead arrangers include Barclays, BNP Paribas, Citigroup, HSBC, Santander and UBS.
December 2nd 2007 – Rio sees BHP approach below value
Mr Tom Albanese CEO of Rio Tinto while speaking to investors in Australia on Sunday, declined to put a value on Rio, but reiterated the company's stance that the all share offer did not recognize the miner's future prospects.
December 3rd 2007 – TATA Corus CEO slams the move
It is reported that Mr Philippe Varin CEO of TATA Corus strongly criticized BHP Billiton's attempt to take over mining rival Rio Tinto by saying that it would be a huge blow to competition. Mr Varin during a conference organized by Metal Bulletin and World Steel Dynamics in Paris said that "I would expect that the anti trust authorities, be it in New York in the US, in Japan, in China or wherever, will take some position to prevent this market share.”
December 8th 2007 – “Dead in the water”
It is reported that while visiting shareholders in the US, Mr Tom Albanese CEO of Rio Tinto has stepped up his rhetoric against BHP Billiton's unsolicited takeover bid and labeling it "dead in the water." Mr Albanese told Dow Jones Newswires and CNB that "There's clear recognition from Rio Tinto shareholders that what we rejected was rejected on the basis of value. It came up well short. There just wasn’t enough value, so it is dead in the water”
December 8th 2007 –Baosteel issues official denial
Baosteel Group Corp, China's largest steel producer, said on its Web site Friday it has no plans to bid for Rio Tinto PLC. The Web site posting confirms comments reported on Thursday that Mr Xu had denied the Herald story and said that "Baosteel lacks the financial wherewithal to take over Rio Tinto."
December 11th 2007 - Rio asks UK Panel to set deadline
Rio Tinto has challenged BHP Billiton on Tuesday to make a formal bid to create a mega mining house or walk away. As per report, Rio asked Britain's Takeover Panel to set a deadline under a put up or shut up rule by which BHPB would have to formalize its approach, more than a month after BHP's USD 140 billion 3 for 1 share proposal was made public.
December 11th 2007 - Blackstone denies rumor
Leading US private equity firm Blackstone has denied a report in the London Daily Telegraph that it is planning to put together a consortium to make a bid for Australian diversified mining giant Rio Tinto. The consortium is rumored to include a Chinese sovereign wealth fund.
December 21st 2008 - The Takeover panel
Following recent representations made by the advisers to Rio Tinto, the Panel Executive has been considering the application of Rule 2.4(b) of the Code to the approach by BHP to Rio Tinto. Following discussions with both parties’ advisers, the Panel Executive has ruled that, unless the Panel Executive consents otherwise, BHP must, by 5.00PM on February 6th 2008, either announce a firm intention to make an offer for Rio Tinto under Rule 2.5 of the Code or announce that it does not intend to make an offer for Rio Tinto.
December 22nd 2008 - Japan shows concerns
Asahi newspaper reported that Japan's Fair Trade Commission is worried about a BHP Billiton takeover of Rio Tinto and has begun talks with counterparts in Europe and Australia about a possible investigation. The Asahi newspaper said the Japanese watchdog was likely to talk with counterparts in South Korea and Taiwan, countries which also have steelmakers highly dependent on the miners.
December 23rd 2007 - China puts embassies on alert
The Telegraph reported that China has begun concerted action to protect its position as one of the world's leading consumers of iron ore and other raw materials to stop the merger of global mining giants BHP Billiton and Rio Tinto. As per report, Chinese embassies in the UK and Australia have sounded out banking and legal advisers in London and Sydney over the past 10 days and their officials are drawing up detailed analysis of the BHP-Rio situation to assess all of China's political options.
December 23rd 2008 – Share buy back cancellation by BHPB
FT reported that BHP Billiton has suspended its USD 10 billion on market buy back of its UK listed shares until further notice, reflecting the fact that it is expected to make a bid for rival Rio Tinto.
December 27th 2008 - Rio chairman hits back at BHP offer
It is reported that Rio Tinto Ltd has hit back at BHP Billiton's hostile approach, playing up its independent growth prospects amid renewed speculation of a Chinese backed counter bid. Mr Paul Skinner chairman of Rio in an open letter to shareholders repeated his board's belief that BHP Billiton's three for one share offer significantly undervalued Rio Tinto and its prospects.
January 6th 2008 - BHPB bid for Rio codename “De Bello”
Reuters reported that Mr Kloppers has put together a team which code named the Rio plan “De Bello”, a reference to Caesar's hard fought victory over heroic Gallic leader Vercingetorix in 52 BC. Mr Kloppers, Like Caesar, who eventually had Vercingetorix strangled is undeterred.
January 15th 2008 - Rio showcases Pilbara iron ore reserves
Herald Sun reported that Rio Tinto has fired a new salvo in its battle to fend off predator BHP Billiton, reiterating its claim to have the biggest and best iron ore operation in the Pilbara amid mounting speculation that BHP will move earlier than expected with an improved offer. Mr Sam Walsh CEO of iron ore business of Rio at a Perth media briefing said that that Rio has the largest iron ore resource and reserve base in the Pilbara, expected to sustain multiple decades of future mining.
January 20th 2008 - Rumors abound of a new bid
The Australian and UK financial markets are abuzz with rumors that mining giant BHP Billiton Ltd is set to make an improved takeover bid for Rio Tinto this week sending Rio Tinto's share price up by 3% last week. Analysts are speculating that a revised offer might be comprise 3.5 BHP Billiton shares for one Rio share, plus a cash component.
February 1st 2008 - Rio gets a Chinese wall
It is reported that state owned China’s largest aluminum producer Chinalco has hooked up with the world’s largest aluminum firm Alcoa and taken a 12% stake in Rio at GBP 60 per share, a whopping 20% premium to Thursday’s closing price. The blocking move has been structured through a Singapore based vehicle called Shining Prospect Pte Ltd, owned by Chinalco and into which Alcoa is injecting USD 1.2 billion.
February 1st 2008 - Rio repeats value statement
Rio Tinto vide a release said that it has noted the announcement by Chinalco and Alcoa. Mr Paul Skinner chairman of Rio Tinto said "This unsolicited development, of which we had no prior notice, reinforces our view of the long term value of Rio Tinto.”
February 3rd 2008– China reported to be looking for legal blocks
The Observer reported that Chinese government is preparing to launch an unprecedented legal challenge in a bid to block BHP's planned takeover bid for Rio Tinto. As per report, high ranking officials from the Chinese embassy in London have approached several law firms over the past month for help in blocking the takeover and Chinese embassies elsewhere in Europe and the US are also believed to have been seeking advice on ways of blocking the takeover.
