Rio Tinto mulls counterbid for BHP Billiton: report

Rio Tinto's Chief Executive Tom Albanese speaks during a press conference in Montreal October 25, 2007. Mining group Rio Tinto Ltd <RIO.AX>, which is fighting off an unsolicited bid from rival BHP Billiton Ltd <BHP.AX>, is considering making a counterbid for BHP in a so-called Pac-Man defense, the Wall Street Journal reported on its Web site on Thursday, citing unnamed sources.

NEW YORK (Reuters) - Mining group Rio Tinto Ltd (RIO.AX), which is fighting off an unsolicited bid from rival BHP Billiton Ltd (BHP.AX), is considering making a counterbid for BHP in a so-called Pac-Man defense, the Wall Street Journal reported on its Web site on Thursday, citing unnamed sources.

Earlier this month Rio Tinto said the all-share takeover proposal from BHP worth about $140 billion, "significantly undervalues Rio Tinto and its prospects."

To fight off BHP, Rio Tinto is considering a broad array of potential options, the Journal reported, including selling assets and other moves that could increase value for shareholders.

Rio Tinto plans to outline its defense at investor meetings on November 26, the Journal reported.

(Reporting by Jonathan Keehner; Editing by Jeffrey Benkoe)