Mittal considering takeover of Rio Tinto

Steel magnate Lakshmi Mittal, the biggest shareholder in ArcelorMittal, is considering entering the takeover battle for Anglo-Australian mining giant Rio Tinto, the Financial Times reported Monday. Citing unnamed individuals familiar with the matter, the business daily said that Mittal was interested in securing larger supplies of iron ore.

"Mr Mittal has considered some involvement in the takeover, such as the idea of taking a stake in Rio through buying from existing shareholders," an unnamed banker was quoted as saying by the FT.

"On the other hand, he could wait until later when, quite possible, some of the iron ore assets (of Rio Tinto) go on sale as a result of demands by antitrust regulators."

Earlier this year, BHP Billiton increased its takeover proposal for Rio Tinto to 147.4 billion US dollars (94 billion euros), which would create a behemoth at a time when commodity prices are enjoying record highs because of surging demands for raw materials.