Post by Sapphire Capital on Aug 8, 2008 21:55:55 GMT 4
August 8, 2008 9:19 a.m.
LONDON -- Diversified global miner Rio Tinto PLC Friday said it was considering an initial public offering for its U.S. coal business instead of an outright sale to another company.
Rio Tinto has targeted the sale of $10 billion in assets this year and has said it will sell at least $15 billion in total as it defends itself against a hostile bid from BHP Billiton Ltd.
Rio Tinto Friday said that its wholly owned subsidiary, Cloud Peak Energy Inc., filed a registration statement with the U.S. Securities and Exchange Commission in connection with Cloud Peak's proposed initial public offering.
The filing lists a maximum offering price of $1 billion, though a company spokesman noted that figure is used to determine a filing fee and doesn't indicate the ultimate proceeds.
A price range would be established before the actual sale, the spokesman added.
Chief Financial Officer Guy Elliott said Rio Tinto continues to explore the possible sale of some or all of its U.S. coal assets as part of the group-wide divestment program, as well as the IPO option. "Both options are being explored in the interests of maximizing shareholder value," he said in a statement.
LONDON -- Diversified global miner Rio Tinto PLC Friday said it was considering an initial public offering for its U.S. coal business instead of an outright sale to another company.
Rio Tinto has targeted the sale of $10 billion in assets this year and has said it will sell at least $15 billion in total as it defends itself against a hostile bid from BHP Billiton Ltd.
Rio Tinto Friday said that its wholly owned subsidiary, Cloud Peak Energy Inc., filed a registration statement with the U.S. Securities and Exchange Commission in connection with Cloud Peak's proposed initial public offering.
The filing lists a maximum offering price of $1 billion, though a company spokesman noted that figure is used to determine a filing fee and doesn't indicate the ultimate proceeds.
A price range would be established before the actual sale, the spokesman added.
Chief Financial Officer Guy Elliott said Rio Tinto continues to explore the possible sale of some or all of its U.S. coal assets as part of the group-wide divestment program, as well as the IPO option. "Both options are being explored in the interests of maximizing shareholder value," he said in a statement.