Rio Tinto shares are on the rise, as traders hear rumours BHP Billiton is about to raise its offer. According to the gossip, BHP may offer 3.8 shares for one Rio, up from the present proposal of 3.4 for one.
This values each Rio share at more than £77. In the market Rio is now up 243p at £66.52, so clearly not everyone is convinced that the suggested price is right. There was no mention of a cash element, which may dealers believe could be necessary to win over Rio investors.
The tale has lifted the rest of the miners, with Vedanta Resources and Eurasian Natural Resources Corporation - which has just announced it will not proceed with its proposed offer for rival Kazakhmys - both up around 4%.
