Rio Tinto Considering Diamond IPO, Insider Says

Bloomberg reported that, according to an unidentified person familiar with the matter, Rio Tinto plc (ASX:RIO,LSE:RIO,NYSE:RIO) has hired Morgan Stanley (NYSE:MS) to oversee an initial public offering of its gem unit after interested buyers have failed to step forward.

As quoted in the market news:

‘Rio has been trying to get out of diamonds for a very long time,’ Evan Lucas, a markets strategist at IG Ltd. in Melbourne, said by phone. ‘Looking to do an IPO suggests that they haven’t been able to find a private buyer.’

The decision on a whole or partial sale of the diamond operations or a separate listing would depend on which offers the most value to its shareholders, Alan Davies, chief executive officer of diamonds and minerals said in April.

Click here to read the full Bloomberg report.