Rio stock halted amid talk Chinalco deal off

SYDNEY (Reuters) - Global miner Rio Tinto (RIO.AX) (RIO.L) called a share-trading halt on Friday amid speculation that it is about to announce that it has scrapped its $19.5 billion deal with China's Chinalco.

The trading halt on the Australian and New Zealand stocks markets came after some media reported that the group would make a rights issue instead to raise up to $15 billion.

Shares in the company closed on Thursday in Australia at A$66.90.

Rio did not mention state-owned metals firm Chinalco in a brief statement on Thursday that followed heated speculation over a deal that been criticized by shareholders and would be the biggest overseas investment by a Chinese company.

"Rio Tinto is pursuing a range of options, some of which are at an advanced stage, for maximizing shareholder value and improving the group's capital structure," it said.