Rio Tinto to counterbid BHP

The much debated BHP Billton Ltd.’s bid to buy stakes in Rio Tinto Ltd. is reporting some developments. Rio Tinto is planning what the Wall Street Journal terms as the Pac-Man defense, in which Rio Tinto will analyse to take over stakes in BHP itself.

According to The Journal, Rio Tinto is strategising its defense by selling assets and increasing value for shareholders, and would clarify this at the investor meetings on November 26. IT would also mention that potential Pac-man bid is only being studied. Rio Tinto was not too keen on the BHP Billiton bid which was worth about $138 billion, as BHP had apparently valued Rio Tinto too low.