RIO - Rio Tinto

[MR.]

"Nothing has been announced by the company. It is all speculation."

http://www.thebull.com.au/articles_detail.php?id=2976

down 11.9%, keeps on sliding. Stops hit?
Both BHP and Rio adding some weight today.

 

[gaps]

Rio Tinto and Chinalco announced today that they have obtained clearance from the
Committee on Foreign Investment in the United States ("CFIUS") regarding the proposed
issue of convertible bonds to Chinalco and the indirect minority investment in Kennecott
Utah Copper Corporation, as contemplated by the strategic transaction announced by Rio
Tinto and Chinalco on 12 February 2009. Rio Tinto and Chinalco jointly filed a voluntary
notice with CFIUS in connection with the transaction. The receipt of CFIUS clearance
satisfies a regulatory pre-condition to the transaction.


what significance does this have actually? thanks in advance!

 

[bonkerrs]

Rio Tinto and Chinalco announced today that they have obtained clearance from the
Committee on Foreign Investment in the United States ("CFIUS") regarding the proposed
issue of convertible bonds to Chinalco and the indirect minority investment in Kennecott
Utah Copper Corporation, as contemplated by the strategic transaction announced by Rio
Tinto and Chinalco on 12 February 2009. Rio Tinto and Chinalco jointly filed a voluntary
notice with CFIUS in connection with the transaction. The receipt of CFIUS clearance
satisfies a regulatory pre-condition to the transaction.


what significance does this have actually? thanks in advance!

+1
Would like to know too. If I've read the news correctly - this is a good thing for RIO share price.

 

[Garpal Gumnut]

+1
Would like to know too. If I've read the news correctly - this is a good thing for RIO share price.

The chart as always gives you some guidance.

If RIO dropped below support/resistance at $60 I'd be out.

Its still in an uptrend though and its mostly pommy funds who are driving the price at present.

Our $ is good.

They are in huge ****.

I'll hold at present

gg

 

[Trevor_S]

So, with the Chinalco deal falling through, and a rights issue on the cards, anyone know when the hold date for RIO shares might be to be entitled to the rights and will they even have an issue for the private investors ?

 

[drsmith]

The $15bn rights issue is at a whopping 58% discount to RIO's $AUD last sale price.

http://www.asx.com.au/asxpdf/20090605/pdf/31hy91869pldpn.pdf

 

[searsr]

This may seem like stupid question but im only new to the stock market, but does that announcement basically say if you have less than 40 shares you cannot participate in the rights issue?

 

[nunthewiser]

****[nunthewiser] 9:25 am: holds rio
**** : prolly gettem cheaper
**** : but is at one with it ****
**** gawd bless oztralia ..jam sand up ya clacker you cheeky chinese

that time shown is from chatroom which is shown as WA time for me

NOT a ST trade .. wants the discounts on issue

 

[drsmith]

This may seem like stupid question but im only new to the stock market, but does that announcement basically say if you have less than 40 shares you cannot participate in the rights issue?

From the chairmans letter to shareholders.

Entitlements to New Shares will be rounded down to the nearest whole number and fractional entitlements will not be allotted to Shareholders but will be aggregated and sold in the market for the benefit of Rio Tinto.....

http://newsstore.smh.com.au/apps/previewDocument.ac?docID=GCA00958716RIO&f=pdf

So I would say no. As an example if you have 20 shares you will have the right to purchase 10 more at $28.29. It is only the fractional entitlement above 10 that is lost (0.5 of a share).

 

[oldblue]

So, with the Chinalco deal falling through, and a rights issue on the cards, anyone know when the hold date for RIO shares might be to be entitled to the rights and will they even have an issue for the private investors ?

Shares are trading cum rights at the moment.
Record date is 11 June so with 3 day settlement they should still be cum rights on Monday but check with your broker.
It's a 21 for 40 entitlement issue so private investors participate. I don't know what happens for holdings of less than 40 shares.

Edit. Previous post covers fractions.

 

[Nyden]

Shares are trading cum rights at the moment.
Record date is 11 June so with 3 day settlement they should still be cum rights on Monday but check with your broker.
It's a 21 for 40 entitlement issue so private investors participate. I don't know what happens for holdings of less than 40 shares.

Edit. Previous post covers fractions.

No, for Australian investors the record date is the 22nd. The 11th is for RIO plc.

It really is a substantial discount, I must say; I just might take it up : Either way, my BHP holdings are sitting very pretty

 

[benwex]

No, for Australian investors the record date is the 22nd. The 11th is for RIO plc.

It really is a substantial discount, I must say; I just might take it up : Either way, my BHP holdings are sitting very pretty

With the window open for alittle while to get involved in this heavily discounted capital raising, anyone with some cash would be seriously considering getting into RIO prior to the 22nd in OZ and the 15th in the UK.

I am really surprised by the size of ther discount. You would expect RIO post record date will tank very big to say the least. But OST has not yet after there discount raising..

benwex

 

[furiouswilly]

No, for Australian investors the record date is the 22nd. The 11th is for RIO plc.

It really is a substantial discount, I must say; I just might take it up : Either way, my BHP holdings are sitting very pretty

I couldn't the record date for Australia, please advice where you get this information from?

thank you

 

[Nyden]

I couldn't the record date for Australia, please advice where you get this information from?

thank you

Read through the announcement "Expected timetable and key dates"
That announcement states that the date for Australia is the 22nd.

 

[drsmith]

I couldn't the record date for Australia, please advice where you get this information from?

thank you

RIO announcements a-plenty. The allocated space for announcements on RIO's ASX page has been filled with today's offerings.

It's in the timetable announcement. Shares trade ex-rights on the ASX on the 17th.

 

[ronski456]

What do people think will happen to RIO's share price once the rights issue has been subscribed to?
In the short term will it be a big short selling target making it plummet?
Will RIO ever get over the magical $100 a share mark?

 

[tommyben]

Sorry I'm quite new to the market and have some RIO Shares

Would you be allowed to buy more than you're entitled too in the rights issue?

 

[oldblue]

No, for Australian investors the record date is the 22nd. The 11th is for RIO plc.

It really is a substantial discount, I must say; I just might take it up : Either way, my BHP holdings are sitting very pretty

Not quite right either, Nyden.

Record date for Rio Tinto PLC is close of business on 15 June.
Must admit I don't quite follow this business of "Record Mailing Date for first posting of Rio Tinto Limited... 11 June " but it seems pretty clear that RIO shares are cum issue at the moment and are quoted ex rights on 17 June.

 

[Nyden]

Not quite right either, Nyden.

Record date for Rio Tinto PLC is close of business on 15 June.
Must admit I don't quite follow this business of "Record Mailing Date for first posting of Rio Tinto Limited... 11 June " but it seems pretty clear that RIO shares are cum issue at the moment and are quoted ex rights on 17 June.

Yes, I meant that the record date is 22nd of June, sorry : At least that's how I understand it. Quite complicated, really - the way they've set all of these different dates for the 2 different markets ...

Perhaps that 11th of June represents the first round of offers?

 

[oldblue]

Sorry I'm quite new to the market and have some RIO Shares

Would you be allowed to buy more than you're entitled too in the rights issue?

Its a rights issue. You will have to buy extra rights on the market. Trading commences on 17 June and ends on 24 June.