MELBOURNE, March 16 (Reuters) - Australia's Foreign Investment Board will extend its review of top Chinese aluminium maker Chinalco's $19.5 billion investment in global miner Rio Tinto, a source briefed on the discussions said on Monday.
Under the deal, announced last month, Chinalco would pay $12.3 billion for stakes in debt-saddled Rio's key iron ore, copper and aluminium assets and $7.3 billion for convertible notes that could double its equity stake in Rio to 18 percent.
FIRB will put an interim order in a government gazette on Monday indicating the review will be extended by 90 days, which would delay a final decision by Treasurer Wayne Swan, and hold up a vote by Rio Tinto's shareholders.
Rio had aimed to complete the deal by July.
The longer it takes for the controversial deal to go ahead, the tougher it will be for shareholders to reject it as global economic conditions worsen, commodities prices slide, and Rio grows more desperate to cut its $39 billion debt.
(Reporting by Sonali Paul) Keywords: RIO CHINALCO/REVIEW (sonali.paul@reuters.com; +61 3 9286 1419; Reuters Messaging: sonali.paul.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
Under the deal, announced last month, Chinalco would pay $12.3 billion for stakes in debt-saddled Rio's key iron ore, copper and aluminium assets and $7.3 billion for convertible notes that could double its equity stake in Rio to 18 percent.
FIRB will put an interim order in a government gazette on Monday indicating the review will be extended by 90 days, which would delay a final decision by Treasurer Wayne Swan, and hold up a vote by Rio Tinto's shareholders.
Rio had aimed to complete the deal by July.
The longer it takes for the controversial deal to go ahead, the tougher it will be for shareholders to reject it as global economic conditions worsen, commodities prices slide, and Rio grows more desperate to cut its $39 billion debt.
(Reporting by Sonali Paul) Keywords: RIO CHINALCO/REVIEW (sonali.paul@reuters.com; +61 3 9286 1419; Reuters Messaging: sonali.paul.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.