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Rio Tinto will announce a $4 billion buy back next month as part of a five-year strategy to lift dividends by at least 10 percent, reports the Australian Financial Review.
Rio Tinto will announce a $4 billion buy back next month as part of a five-year strategy to lift dividends by at least 10 percent, reports the Australian Financial Review.
According to the Financial Review:
A buyback could support Rio Tinto’s share price and please investors who might be considering supporting Glencore’s hostile merger proposal. But it could also drive up Rio Tinto’s debt when prices for its main product, iron ore, have fallen 50 per cent to $US70.67 a tonne.
Credit Suisse mining analyst Paul McTaggart said Rio could announce next month an on-market buyback of up to $US4 billion run over at least three years, and increase its underlying dividend 15 per cent.
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