Rio, as expected, came out fighting on Monday – as the miner attempted to throw off the attentions of larger rival BHP Billiton.

Rio has already rejected outright the three-for-one share approach from BHP, which has yet to make a formal bid. As such Rio is not, it says, issuing a defence. The company is merely laying out, as part of a regular scheduled investor meeting, a detailed statement of its growth prospects.

The five big points are:

• “exceptional growth strategy” in iron ore – with a “conceptual pathway” (whatever that is) to treble production
• world’s leading aluminium and bauxite producer – synergies from Alcan increased to $940m a year, from $600m
• leading copper business – potential to double forecast production at La Granja mine in Peru
• target for asset sales, after Alcan deal, now $15bn, up from $10bn
• dividend to rise 30 per cent this year, with a promise of 20 per cent increases at least to come in next two years

From chief executive Tom Albanese (right):

The rise in global mineral demand is a trend that we expect to continue for decades because of fundamental demographic and economic shifts, especially in developing economies like China and India. We believe that the value in Rio Tinto is yet to be fully reflected by the market.

And they’re serious about getting that message out there. The Rio statement on Monday morning came complete with a directory of 10 investor and media contacts globally to choose from for further spin, with 18 numbers between them. Get diallling.

This entry was posted by Helen Thomas on Monday, November 26th, 2007 at 8:03 and is filed under Capital markets, M&A. Tagged with bhp billiton, rio tinto. Edit this entry.