China planning to buy stake in BHP: report
SYDNEY (Reuters) - China is planning to buy a more than 9 percent stake in BHP Billiton Ltd (BHP.AX) (BLT.L), the world's top miner, The Australian newspaper reported on Wednesday citing unidentified sources in Beijing.
Chinese authorities were yet to determine which state-owned financial institution might take the lead role in seeking sellers within BHP's diverse shareholder base, the report said.
On Tuesday, BHP's London-listed shares jumped 4.6 percent amid market talk that Baoshan Iron and Steel Co (600019.SS), China's biggest steel maker, may be the buyer of a stake in BHP.
BHP's New York-listed shares jumped 5.2 percent.
The speculation comes after Chinese state-owned company Chinalco bought a 9 percent stake in Rio Tinto Ltd (RIO.AX) (RIO.L) for $14 billion in February just weeks before BHP launched an all stock $135 billion takeover bid for Rio.
Rio's board has rejected that bid.
($1=A$1.08)
(Reporting by Denny Thomas)
