Mining group Rio Tinto has moved into positive territory after its earlier falls, on revived takeover talk.
There has been a growing chorus of opposition to Rio's plan for Chinalco to invest $19.5bn in the company, and analysts have been speculating that the alternative of a cash call might after all come to pass.
But now traders are hearing talk that one time predator BHP Billiton might be back in the picture, and this has been enough to push Rio's shares 10p higher to £25.13. BHP meanwhile is up 2p at £13.92.
A number of investors in Rio have been reluctant to back the China deal, preferring instead a rights issue or a sale of assets to BHP. With the rise in Rio's share price since the start of the year, it is plausible it could either try to renegotiate the Chinalco agreement or abandon it and take one of these alternative courses.
