Australia to scrutinise any China move on BHP

By James Regan

SYDNEY (Reuters) - Australia will look closely at any moves by Chinese entities to buy shares in mining giant BHP Billiton (BHP.AX) (BLT.L) to make sure its national interests were not at risk, Treasurer Wayne Swan said on Thursday.

BHP said in a statement earlier it knew of no such plans, after The Australian newspaper reported that Beijing was in the early stages of plans to seek more than 9 percent of BHP and gain some influence in the miner's hostile takeover offer for rival Rio Tinto (RIO.AX)(RIO.L).

"I don't comment on any proposed takeover or forecast takeover of any particular entity," Swan told Australian Broadcasting Corp radio. "(But) you can be in no doubt that we will be taking decisions absolutely in the national interest on these questions."

BHP was forced to publicly respond on Thursday to Australian stock exchange regulators who wanted to know if the company was aware of any Chinese moves to buy its shares. BHP stock rose almost 4 percent in a falling Australian market on Wednesday.

A BHP spokeswoman declined further comment on the matter.

BHP shares were up 0.2 percent at A$42 late on Thursday, in a market .AXJO down 1.25 percent.

Speculation has swirled in Australia that Beijing was bent on using equity stakes to keep BHP and Rio apart, ever since state aluminium producer Chinalco acquired 9 percent of Rio for $14 billion (7.1 billion pounds) in early February.

Public comments by groups representing steel makers and other industrial sectors in China opposing a BHP-Rio tie-up have served only to fan the flames.