Rio Tinto’s top dogs can defend the miner’s clunky dual-listed company structure until they’re blue in the face, but the issue will not be put to bed while they’re cutting $10 billion cheques for M&A deals.
That’s the simple reality for Rio Tinto. It cannot expect shareholders to drop the dual-listed company (DLC) issue – the fact Rio Tinto is split into two companies with two sets of shares trading at materially different valuations – while management says one thing on earnings calls and does the other every time it bids for something.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.