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BHP Billiton launches $147 billion Rio Tinto bid

SYDNEY (Reuters) - BHP Billiton Ltd/Plc , the world's No.1 miner, formally launched a $147.4 billion takeover bid on Wednesday for rival Rio Tinto Ltd/Plc .

BHP, which also announced its first-half profit fell 2.4 percent to $6.017 billion, said its offer had a minimum acceptance condition of 50 percent of Rio Tinto shares.

"We think this offer is compelling," Kloppers said.

"The offer should be enough to get BHP talking to Rio," said Rob Patterson, managing director of fund manager Argo Investments. "We think to raise the offer to that degree probably makes sense."

BHP said Rio shareholders would hold 44 percent of the merged entity, compared with 36 percent in the initial approach made last November.

The group posted record half-year results in its iron ore, petroleum and manganese businesses.

($1=A$1.12)

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