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Chinalco against potential changes in Rio deal: report
MELBOURNE (Reuters) - A senior executive of Chinese metals firm Chinalco stood by a planned $19.5 billion tie-up with global miner Rio Tinto Ltd/Plc (RIO.AX) (RIO.L) amid speculation Rio might try to revise part of the deal to win shareholder support, the Financial Times reported on Monday.
"This investment is a package. It is a result of two months of very intensive negotiations. It cannot be viewed separately," Wang Wenfu, president of Chinalco Overseas Holdings, was reported as saying in an interview with the Financial Times, seen on its Website (www.ft.com).
As part of the deal, Chinalco agreed to invest $7.3 billion in convertible bonds that would double the Chinese group's equity stake in Rio Tinto to 18 percent.
Some shareholders have complained that the deal favors one shareholder and want to be able to take part in the capital raising.
"We respect the (pre-emption) rights of shareholders. Shareholders should have the right to help their company and Rio management has to assess the situation and it is their judgment that this transaction is in the best interest of all shareholders," the article quoted Wang saying.
Speculation the deal would have to be revised has grown over the past week as Rio's shares have climbed above the $45 conversion price for one of the two tranches of bonds.
Rio's Australian-listed shares last traded up 5.2 percent at A$ 67.50 Australian dollars ($49.74).
($1=1.357 Australian Dollar)
(Reporting by Sonali Paul; Editing by Jonathan Standing)
