Investors urge caution as Rio Tinto eyes BHP’s $40b Anglo bid

Rio Tinto should not challenge BHP for control of Anglo American, and should instead target smaller lithium and copper producers, a major investor says.

The smaller of the two Australian mining majors has been considering whether it could get involved in the potential break-up of London-listed Anglo after BHP lobbed an all-scrip takeover offer valuing the company at close to $60 billion.