Rio Tinto seeking changes to Chinalco deal: report

SYDNEY (Reuters) - Global miner Rio Tinto (RIO.L) (RIO.AX) may replace the $7.2 billion convertible bond part of its tie-up plan with Chinalco with a capital raising underwritten by the Chinese firm, the Australian newspaper said on Wednesday.

Without citing sources, the paper said Rio is believed to have told Chinalco that talks with Rio shareholders have brought demands for changes to the planned $19.5 billion tie-up.

Chinalco has not indicated that it is happy to compromise on the deal, but is thought to be resigned to changing the terms of the bonds but does not want any change to the part of the deal that gives it stakes in Rio mining assets, the paper said.

The report is the latest in a series saying that Rio may be considering changes to the Chinalco deal. The speculation has come as Rio Chairman Jan Du Plessis meets shareholders to discuss the deal.

Major UK-based investors in Rio have demanded that it scrap a deal with Chinalco and actively pursue a new capital raising or a sale of assets to rival BHP Billiton Ltd/Plc (BLT.L) (BHP.AX).

Rio said on May 15 it remains committed to the tie-up with Chinalco, it said.

(Reporting by Mette Fraende)