Aluminium Corp of China, or Chinalco, China’s biggest aluminum producer, may take a smaller stake in Rio Tinto to win approval for its $19.5bn investment, reports Bloomberg, citing the Sydney Morning Herald . Chinalco is open to letting Rio sell convertible bonds to other shareholders, reducing its planned stake to 15%, the Herald said. That may allow the state-owned entity to avoid breaching foreign ownership rules and placate investors concerned at not being offered stock on the same terms.

This entry was posted by Gwen Robinson on Thursday, May 21st, 2009 at 4:57 and is filed under Capital markets, Commodities, M&A. Tagged with chinalco, rio tinto. Edit this entry.