China ready to block BHP takeover bid for Rio Tinto in court

The Chinese government is preparing to launch an unprecedented legal challenge against BHP's planned $130bn takeover bid for Rio Tinto. High-ranking officials from the Chinese embassy in London have been approaching top City law firms over the past month for help in blocking what would be the world's second-largest takeover. Beijing has recently drawn up framework legislation for the country's first competition law. Once passed, the Chinese government wants to use it to mount its first legal challenge to a foreign takeover. The legal moves are part of a two-pronged attack on BHP, which has until Wednesday to table an offer for Rio or walk away for six months.

China ready to block BHP takeover bid for Rio Tinto in court guardian.co.uk Sun, Feb 3, 2008