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China planning to buy stake in BHP: report

Tue Apr 8, 2008 6:47pm EDT
 
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SYDNEY (Reuters) - China is planning to buy a more than 9 percent stake in BHP Billiton Ltd (BHP.AX: Quote, Profile, Research, Stock Buzz) (BLT.L: Quote, Profile, Research, Stock Buzz), 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: Quote, Profile, Research, Stock Buzz), 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: Quote, Profile, Research, Stock Buzz) (RIO.L: Quote, Profile, Research, Stock Buzz) 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)

 
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