BHP Billiton has urged shareholders to remain patient as it persists with its £75 million takeover bid for fellow miner Rio Tinto.
The Melbourne-based miner’s bid to create a global powerhouse was rejected for a second time last week despite an improved offer.
In a letter to shareholders, Don Argus, the chairman, said that BHP had been “patient and disciplined to date and will continue to do so”.
However, the company warned shareholders that “this process will take some time”.
Even if Rio succumbs to BHP’s advances, regulatory hurdles for the takeover are expected to take up to 12 months to clear.
Advertisement
BHP is offering 3.4 shares for every Rio share in what is expected to be a drawn-out battle.
Mr Argus also highlighted the merits of the offer to shareholders. He said: “Bringing these two companies together will provide a unique opportunity to unlock value for both BHP Billiton and Rio Tinto shareholders.
“Your board is satisfied that the offer we have made is both compelling and responsible, and very importantly, is value-enhancing for you.”
Rio Tinto, which dismissed BHP’s latest offer as significantly undervaluing the company, is expected to reveal a 9 per cent rise in second-half profits when it reports tomorrow.