BHP Might Rebid For Rio Tinto

Although BHP Billiton (NYSE: BHP) back pedaled on its bid for rival Rio Tinto (NYSE: RTP) almost a year back, the speculation of BHP returning with another bid is growing stronger, according to the Guardian.

The speculation seems to be based on BHP’s substantial cash power and the probability of RTP shareholders voting against the iron ore joint venture deal signed by BHP and RTP.

In case the deal fails, Citigroup says that BHP might want to use its cash power to come back with a new bid for RTP. The Citigroup analyst believes that the new potential bid could garner at least a 30% premium.