Rio Tinto ripe for takeover

Mining giant Rio Tinto may be ripe for a takeover bid according to an analyst for Citigroup.

The de-rating of Rio Tinto for example, has opened up a value arbitrage and is now "well into leveraged buyout territory," according to Citigroup analyst Heath Jansen.

"Rio stands out as a potential acquisition candidate, either by private equity or the incumbent mining companies," he said in a note to clients.

Rio Tinto stock traded down in Australia despite the speculation.

Unidentified analysts have also speculated that ExxonMobil and Royal Dutch Shell may be possible buyers of the Australian mine operator.

Rio Tinto's North American operations includes Iron Ore Company of Canada in Labrador.

ExxonMobil is the largest operator in the Newfoundland and Labrador offshore oil industry.

-SRBP-