BHP Billiton Ltd., the world's largest mining company, may need to offer a 60 percent premium to buy rival Rio Tinto Group, Perennial Investment Partners Ltd. said.
"Perhaps that's the price to get a friendly merger,'' Ken West at Melbourne-based Perennial Investment, which manages A$20 billion ($18 billion), including Rio shares, said in an interview shown on the Australian Broadcasting Corp. today. Rio had to pay a similar premium to buy Alcan Inc. for $38.1 billion, he said.
Rio won't consider any bid below 70 pounds ($146) a share, The Times of London said today, citing unidentified people close to the third-largest mining company. That's a 61 percent premium to the stock's price before Melbourne-based BHP said Nov. 8 Rio had rejected its indicative three-for-one share offer....MORE
