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Positive start to Rio rights issue

Shares in Rio Tinto have slumped as much as 23 per cent in trade today, as the miner launches its $US15.2 billion ($A19 billion) rights issue though market observers viewed the closing value as a positive result when the rights were taken into account.

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Perth
Please check your facts again. Rio shares was adjusted ex-rights offer before trading this morning, and actually started trade at $57.759. The stock closed only 0.1% lower - a great performance in my opinion. The rights offer is actually trading independently and closed at $29.74 - which means investors that bought Rio yesterday at around $72 will still be slightly in profit today since they can sell their Rio shares (closed at $57.68) + rights offer ($29.74 at 21/40 = $15.61) for $73.29. Headlining that the group slumped 23% is therefore incorrect.

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