ChinaThis from today's National Post:
With its balance sheet still on the ropes from the takeover of AlcanInc., Rio Tinto Ltd. is poised to take a massive cash injection from astate-owned Chinese company that is sure to draw controversy and changethe face of the global mining sector.
London-based Rio is set to receive an investment of aboutUS$19.5-billion from Aluminum Corp. of China (Chinalco), publishedsources say. The deal would boost Chinalco’s stake in the company toroughly 19% from 9% and give it minority stakes in a number of Rio’sprized mining assets.
It is the biggest foreign corporate investment to date by a Chinesecompany, and could give Chinalco significant influence over Rio’sstrategy.
“Once you let them in, you’ll never get them out,”said one analyst, who asked not to be named. “It’s not control by anymeans, but it’s a fairly big foot in the door. You’ve just permanentlyremoved a takeover premium.”
Just an insight into the magnitude of China's financial capabilities. They're ponying up $19.5 billion for 10% of the company. They could take over IVW with their lunch money. The writer seems to be comparing them to an infestation of mice.
And yes Sky, I think IVW is ideal for your TFSA. That's what I did with my $5,000 - even a few cents a year appreciation beats any interest rate you can get today. I get giddy just thinking about it being tax free. That and your home are about the only shelters left to us poor taxpayers these days.