BHP Renews Bid for Rio Tinto

BHP Billiton (BHP Quote) has increased its hostile stock offer for fellow miner Rio Tinto (RTP Quote), upping the ante in its bid to create a mammoth resources firm.

Previously, Australia's BHP had offered three shares for each share of Rio Tinto, but now it says it's raising the proposal to 3.4 shares. The U.K.'s Rio Tinto has thus far refused to negotiate with BHP.

BHP said its stockholders would own 56% of the combined company, and Rio Tinto investors would hold the remaining 44%. Based on BHP's closing price Feb. 4, the offer is worth $147.4 billion, BHP said. That's down from $173.6 billion last fall, when BHP first approached Rio Tinto, because of a decline in its share price. ...