BHP Billiton reportedly taps more banks for Rio bid

(Reuters) - BHP Billiton(BHP.AX: Quote, Profile, Research) has brought in more banks to help it find the $70 billion it needs to fund its planned takeover of Rio Tinto (RIO.AX: Quote, Profile, Research), Britain's Sunday Times newspaper reported.

Citing no sources, the paper said BHP has tapped Barclays (BARC.L: Quote, Profile , Research), UBS (UBSN.VX: Quote, Profile, Research), Goldman Sachs (GS.N: Quote, Profile, Research), HSBC (HSBA.L: Quote, Profile, Research), BNP Paribas (BNPP.PA: Quote, Profile, Research) and Santander (SAN.MC: Quote, Profile, Research) to work alongside original banker Citigroup on the funding.

Merrill Lynch, originally the other provider of finance alongside Citi, will remain as broker to BHP but will not provide any money, the paper said.

The new financing arrangements, which come as a global credit crunch makes raising money more difficult, will give BHP the flexibility to execute a $30 billion share buyback proposed as part of the deal, or add cash to the current around $130 billion all-share offer, the paper said.

BHP, the world's biggest miner, must make a formal offer by February 6 or leave Rio alone for at least six months under a deadline imposed by the UK Takeover Panel.

 

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