CIC plans to counter bid for Rio Tinto

China Investment Corporation (CIC) is planning to join with domestic steelmakers in a consortium to counter a bid by Australia-based BHP Billiton for mining company Rio Tinto, the South China Morning Post reported. The Chinese sovereign wealth fund lacks the financial resources to counter BHP Billiton's US$150 billion bid on its own. The Chinese government is concerned that if BHP Billiton wins the bid, the new company will control more than 33% of global iron ore sales, putting raw material prices into question. CIC is suggesting that domestic steelmakers Baosteel, Shougang Group and Angang Steel join with it to put forth a US$200 billion offer. The Chinese fund is looking to overseas acquisitions to bolster its returns on the country's large foreign exchange reserves.