From the result, we know that even the Chinese best negotiation team with their chosen IB partners is still weak in closing such kind of sensitive deal. Rio Tinto agrees to pay 1% "break-up" fee of 19.5B USD points out its determination for stockholder's best interest. Without the hot money chasing commodities and recently rejection of iron ore contract with Chinese buyers, Rio Tinto could have accepted Chinalco's proposal. From Rio Tinto's new joint venture with BHP, we are sure that 50% iron ore price cut from Chinese buyers has set the alarm for mining giants!
Chinese team and its investment banker partners, long way to go!
