SteelOrbis Shanghai
Speaking to the press in Beijing regarding market rumors of a move by a Chinese company for Rio Tinto, Baosteel chairman Xu Lejiang stated, "We are considering this issue and will probably put forward a bid."
Xu Lejiang went on to declare, "The acquisition plan is still under discussion as to how to operate this issue. We haven't signed any agreement with Rio Tinto."
Referring to the possible purchase price, Mr. Xu said he feared that even $200 billion would not be enough.
In possession of approximately three billion mt of iron ore reserves, Rio Tinto maintains an annual supply of nearly 200 million mt. By the end of November 9, 2007, the total market value of Rio Tinto reached $151.7 billion, with a price-to-earnings (P/E) ratio of around 12.