BHP Shares Soaring After Chinalco Bid Rumour

BHP Billiton's shares hit record highs today on speculation that state-controlled Chinese company Chinalco is building a stake in the company.

The Chinese aluminium giant is already the largest shareholder in Rio Tinto, which BHP is trying to acquire in a hostile, A$177bn all-share offer.

According to Reuters, analysts in London suggest a Chinese buyer is aiming to accumulate a ten percent stake, possibly at the equivalent of A$53 a share.

BHP CEO Marius Kloppers told US media this week that he is unaware of the rumours and would not comment on them.

Chinalco has also not commented on the speculation.

BHP's shares rose nearly seven percent to a record A$48.90 a share, ending six percent higher at A$48.56 in above average volume, its biggest one-day gain since January.

By Ozge Ibrahim