Rio Tinto sees downturn continuing into 2009
SYDNEY (Reuters) - Global miner Rio Tinto declared on Wednesday it was well positioned to deal with the global economic slowdown, a day after BHP Billiton dropped its bid for the company, sending Rio's shares diving.
Rio Chairman Paul Skinner said the slowdown in commodities demand was likely to persist into 2009, but said China's recent stimulus package would start to bear fruit next year as well.
"We believe we are well positioned to deal with the economic slowdown," Skinner told a scheduled business breakfast.
On Tuesday, larger rival BHP Billiton abandoned its $66 billion takeover bid, blaming sliding metals prices and the threat of global recession for scuppering the mega-merger.
Skinner said Rio was not yet ready to publish the advisory fees it paid for its defense against BHPs bid.
Rio's shares slid 37 percent in London to close at a four-year low of 14.53 pounds, as investors who had bet on the bid going ahead bailed out.
There were also worries Rio might have to raise capital to pay down debt, without BHP's strong balance sheet to back it up.
(Reporting by James Regan, writing by Sonali Paul, editing by Mark Bendeich)
