7th Oct 2014 05:39
LONDON (Alliance News) - Mining giant Rio Tinto PLC said Tuesday that it was contacted by Glencore PLC in July regarding a potential merger of the two companies but rejected the proposal, saying it was not in the best interests of Rio Tinto shareholders.
Rio Tinto confirmed that no talks are taking place with Glencore at present.
"The board's rejection was communicated to Glencore in early August and there has been no further contact between the companies on this matter," Rio Tinto said in a statement.
Rio Tinto chairman Jan du Plessis said: "Under the leadership of Sam Walsh and Chris Lynch, Rio Tinto has made significant progress in refocusing and strengthening its business. "The board believes that the continued successful execution of Rio Tinto's strategy will allow Rio Tinto to increase free cash flow significantly in the near term and materially increase returns to shareholders. Rio Tinto's shareholders stand to benefit from the very considerable value that this will generate."
Copyright RTT News/dpa-AFX
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