The following is a timeline of the bid of BHP Billiton Limited for Rio Tinto.
April 2007: BHP approaches Rio with a nil premium merger proposal which Rio rejects, according to a Southern Cross Equities research report dated December 4th 2007.
May 2007: Rio shares rise 11% to a then record on speculation of an approach from BHP. Rio denied the speculation.
May 31 2007: BHP appoints Mr Marius Kloppers to replace Mr Charles Chip Goodyear as CEO. Mr Kloppers, previously head of metals at BHP, oversaw BHP’s acquisition of WMC Resources.
June 2007: BHP’s market value breaks through USD 200 billion.
July 2007: Rio Tinto buys Alcan for USD 38.1 billion to become the world’s biggest aluminum maker.
November 8th 2007: BHP Billiton confirms it put forward a takeover proposal to Rio Tinto, which rejects it saying it significantly undervalues the company and its prospects.
November 12th 2007: BHP Billiton says it offered three shares for one to Rio. BHP Billiton outlines USD 3.7 billion cost saving synergies and says it will buy back USD 30 billion of shares should it win control of Rio. Rio’s Australian shares surge 18%, taking its market value through USD 200 billion.
December 21st 2007: UK’s takeovers panel ruled BHP Billiton must make a formal takeover bid for Rio Tinto by February 6th 2008 or give up its offer.
February 1st 2008: Aluminum Corporation of China and Alcoa Inc buy 9% stake in Rio Tinto for USD 10.9 billion.
February 6th 2008: BHP makes a formal takeover bid for Rio, offering 3.4 shares for each share of Rio. Rio rejects the offer saying it significantly undervalues it.
May 30th 2008: BHP notifies European Union regulators of its plan to buy Rio, triggering an antitrust review of the takeover.
June 6th 2008: BHP makes submission to Australian competition regulator seeking approval for the hostile bid.
July 3rd 2008: US antitrust regulators give partial approval for BHP’s proposed takeover of Rio.
July 4th 2008: EU regulators extend probe into bid, citing serious doubts concerning antitrust regulations.
July 23rd 2008: BHP forecasts iron ore production would rise 23% to 137 million tonnes in the year to June 30th 2009, on demand driven by China.
August 1st 2008: The China Iron and Steel Association say the Chinese government should reject BHP’s proposed takeover of Rio as it would breach fair trade practice.
August 4th 2008: Mr Sam Walsh CEO of Rio says bid fails to recognize value of its assets and prospects.
August 18th 2008: BHP says profit rose 30% in second half; Mr Kloppers said that China exports have come under pressure.
August 22nd 2008: The Australian Competition and Consumer Commission said that it was seeking further information on certain competition issues regarding the takeover.
August 25th 2008: BHP subpoenaed by South African antitrust regulator to provide information it declined to give relating to the takeover; BHP agrees to provide documents on August 29th 2008.
September 2nd 2008: It is revealed European Union regulators asked BHP Billiton Limited for more information about its takeover and have put their review of the proposed hostile takeover on hold.
September 24th 2008: Mr Kloppers CEO of BHP says it may have to rethink takeover should European regulators demand significant asset disposals.
October 1st 2008: BHP wins approval from Australia’s competition regulator for bid.
October 23rd 2008: European Union regulators told lawyers for BHP its hostile bid for Rio may break antitrust rules; South African regulators approve bid.
November 4th 2008: European regulators move a step closer to blocking hostile offer by sending a formal complaint outlining antitrust objections to the deal.
November 21st 2008: European regulators tell BHP its push to change the way prices are set for iron ore is one of the issues that may jeopardize its bid for Rio.
November 25th 2008: BHP withdraws bid for Rio.
(Sourced from Bloomberg)
