'Rio wanted premium for Glencore deal'

Sydney

RIO Tinto Group shareholders would demand a premium of as much as 30 per cent in any deal with Glencore Plc, making a tie-up unlikely due to a lack of synergies, said Alberto Calderon, a former BHP Billiton Ltd. executive.

"The issue is mergers of mining companies generally don't have synergies," Mr Calderon, a board member of Orica Ltd, told channel 9's Financial Review on Oct 12. "The only way you have synergies is when you have overlapping operations like BHP and Rio had at the Pilbara. This is not the case here. I don't think Glencore could afford to pay that premium."