Glencore PLC Sizing Up Support for Rio Tinto PLC BID

Rio Tinto plc

shares jumped on further speculation Monday it could be acquired by Glencore PLC. After a flurry of rumors last month, Bloomberg news service said Monday that Glencore has "reached out" to Rio's 9.8 percent shareholder Aluminum Corp. of China Ltd.

to gauge its potential support for a deal. Glencore gained more than 6 percent recently on the London stock exchange. Rio was up 4 percent and Aluminum Corp. rose 3 percent. Bloomberg, citing anonymous sources, said no talks are underway between Glencore and Rio, and that no formal bid is likely before the end of 2014. Glencore is also contacting other Rio shareholders while studying potential financial and regulatory obstacles, Bloomberg said. A merger of London-based Rio Tinto with the Swiss comany Glencore would form the world's largest mining company, worth about $160 billion. Rumors of a deal, apparently spread by bankers, were widely reported in September. Low prices for iron ore, which account for half of Rio Tinto's revenue, have hurt its share price and made it vulnerable.