[miningmx.com] – RIO Tinto will spend between now and April justfiying why shareholders should support it in the event Glencore returns to buy out the company, said Bloomberg News citing analysts.
The expectation is that Rio Tinto CEO, Sam Walsh, will sign off on a significant share buy-back in order to provide the returns that his cost-cutting warrants. “If Rio doesn’t deliver a buyback that the market is happy with investors will say “well why should we continue to back you as the management team?’’ Clive Burstow, an investment manager in global resources at Baring Asset Management.
After revealing its offer of a merger, Rio Tinto said it was prohibited from making a fresh approach for six months, or April.
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