As per reports in media, BHP Billiton is poised to increase its 3.4 for 1 offer for Rio Tinto to 4 for 1, valuing Rio at more than USD 200 billion.

Fuelling the speculation was a report that one of the executives leading the BHP bid, commercial director Mr Alberto Calderon, had cancelled planned meetings with investors next week after being called back to the Melbourne head office.

Traders in London speculated that BHP would increase its offer in order to win an endorsement from the Rio board, thereby make it easier to receive worldwide anti trust approvals. BHP’s existing hostile bid is about to be tested by European Union competition regulator amid strong opposition from steel makers, who fear a merger of the world’s second and third-biggest iron ore producers would lead to unacceptable iron ore pricing power.