At an investor seminar on Monday, Rio Tinto CEO Tom Albanese is slated to prove his employer's worth and claim the takeover bid from rival BHP Billiton is undervaluing the company.
BHP Billiton currently values Rio at approximately $119 billion, but shareholders of the latter company rejected BHP's 3-for-1 bid on November 8. The investors aren't the only ones who have voiced concerns about the possible merger, though, as major steel manufacturers overseas have complained a buyout would virtually monopolize the industry. According to data from the International Iron and Steel Institute, a combination of Rio and BHP shares in the iron ore market would be 38.6%.
On the rumors that Rio execs may buoy the bid higher, RTP shares today have gained upward of 35 points, or more than 7.5%. In parity with its rival, BHP Billiton has advanced approximately 4.5% before the holiday-induced early market close.