BHP receives funding from seven global banks

BHP Billiton has been officially given time until February 6, 2008 to firm its plans on its take over bid of Rio Tinto. According to the British Independent, BHP Billiton has become aggressive in its take over plans and intends a takeover deal worth to £65 billion. To succeed in its plans, BHP has been granted finance by seven leading global banks including Citigroup, Santandar, BNP Paribas, Barclays, UBS, Goldman Sachs and HSBC.

In this take over the earlier set ratio of the deal has been altered from three BHP shares for each Rio Tinto share, to now be 20% higher. In other words the value of the ratio is now likely to be 3.8 BHP shares for one Rio Tinto share. However, the industry ahs received only one side of the story, as Rio Tinto’s Board of Directors continue to keep mum about the merger as they feel that BHP’s offer has been undervaluing the company.