Anglo-Australian mining group Rio Tinto is expected to raise the stakes in its takeover battle with mining giant BHP Billiton by telling shareholders that its aluminium business is worth up to US$20bn more than current estimates. Each 10 cent increase could boost Rio's earnings by about US$500m. When added to greater synergies from the Alcan acquisition and forecasts for higher global demand fuelled by China's construction boom, the value of the business could rise by US$20bn, bullish analysts believe. A successful reassessment of the aluminium business would follow a pattern Rio established when it revalued its iron-ore division.
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