Today Rio Tinto gave BHP an ultimatum to either ‘put up or shut up' with an application to the UK Takeover Panel which would force BHP to make a formal bid or back down.
If the ruling passes, BHP will be required to formalise its $140 billion 3-for-1 share.
The Rio and BHP dance has been carrying on for more than a month now, and has sparked widespread speculation of counter bids and triggered protests from rival steelmakers who fear an all-powerful combined group that will set the benchmark for raw materials prices.
A married Rio and BHP would effectively dominate 27% of the world market for iron ore and control the global flow of coal, copper, uranium and diamonds.
Fat Prophets analyst Gavin Wendt told MiningNews.net today that bringing in the UK Takeover Panel is a strategic move from Rio.
"Rio's just bedded down the Alcan acquisition, they should be going full steam ahead to add value for shareholders, but instead they're looking over their shoulders every five minutes wondering what BHP's going to do … Its an incredible distraction for management's time."
"I don't think BHP would want to put their current proposal on the table because the market hasn't liked it.
"If BHP's interested, they're going to have to come up with a higher offer, the market's made that perfectly clear as has Rio. BHP's offer as it stands has underwhelmed the market."
Rio fell by 20 cents today to close down at $146.50, whereas BHP gained 61 cents to close the day up at $44.20.
