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Rio wraps up rights issue, Australia demand strong

Thu Jul 2, 2009 6:23pm EDT

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SYDNEY, July 3 (Reuters) - Global miner Rio Tinto Ltd (RIO.AX) (RIO.L) wrapped up one of the world's biggest rights issues on Friday, saying its Australian shareholders had taken up 94.76 percent of their entitlements to the new shares.

On Thursday, the indebted Anglo-Australian group reported that its larger UK shareholder base had taken up 96.97 percent of the $15.2 billion rights offer, the fifth-biggest on record.

Rio is raising money to cut a $38 billion debt mountain it accumulated when it bought Canadian aluminium group Alcan at the top of the commodities market in 2007.

Strong take-up of the rights offer would place Rio Tinto in a much stronger position, but analysts have said the company will still need to pursue the sale of non-core assets. ($1=A$1.25) (Reporting by Denny Thomas)



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