MARKET TALK: Rio Tinto Shareholders May Vote Down BHP JV -RBS

29th Jun 2010 01:23

0023 GMT [Dow Jones] RBS analysts continue to believe that Rio Tinto (RIO.AU) shareholders will not vote for group's planned iron ore joint venture with BHP Billiton (BHP.AU) following a briefing with RIO CEO Tom Albanese. "The iron ore JV synergies were acknowledged but no comments on a potential change in structure of the equalisation payment were provided," RBS says. "We continue to believe that RIO shareholders will not vote for the JV under the current payment terms." Also reckons that Albanese's "tone was more cautious than recent outlook statements provided by the company", with key concerns around the property bubble in China and EU debt issues. Keeps its Buy rating on RIO but trims its target to A$80.06 from A$80.66. RIO currently up 1.1% at A$69.36. ([email protected]) Contact us in Singapore. 65 64154 140; [email protected] (END) Dow Jones Newswires June 28, 2010 20:23 ET (00:23 GMT)