Thursday, June 4, 2009

Chinalco may revise Rio deal before deadline: sources

MELBOURNE (Reuters) – Chinese state-owned metals firm Chinalco may revise its planned $19.5 billion investment in miner Rio Tinto (RIO.AX)(RIO.L) before a June 14 deadline to avoid further delays in Australian government approval, two sources close to the deal said on Thursday.

Any changes would address concerns raised by both Canberra and Rio Tinto shareholders over the biggest overseas investment by a Chinese company.

"I think they'll (Chinalco) come out and make an announcement before the deadline," an investment banker with direct knowledge of the deal told Reuters.

"There's a lot of things on the table and there's a lot of frustration, and I think Chinalco are getting to the point where they want to make an announcement sooner rather than later, probably next week," the banker said.

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