Rio eyes BHP pacts to fight off takeover: paper

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The offer is part of a preliminary defense plan -- called Project Manchester -- against BHP's proposed three shares for one bid for Rio, the paper said in its online edition, without citing sources.

SYDNEY (Reuters) - Rio Tinto Ltd/Plc <RIO.AX> <RIO.L> is considering offering joint ventures with BHP Billiton Ltd/Plc <BHP.AX> <BLT.L> as an alternative to BHP's proposed around $140 billion takeover, Britain's Daily Telegraph newspaper said on Tuesday.

The offer is part of a preliminary defense plan -- called Project Manchester -- against BHP's proposed three shares for one bid for Rio, the paper said in its online edition, without citing sources.

One area thought to be under consideration by Rio for a partnership would involve operations in western Australia's Pilbara region, where both companies have extensive iron ore mining businesses, it said.

BHP said on November 8 that it had approached Rio with an offer, but Rio was quick to rebuff the offer as too low.

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A marriage of BHP and Rio would create the world's biggest mining force capable of controlling the global flow of huge amounts of iron ore, copper, coal and other commodities for industrial use.

(Reporting by James Regan, editing by Jonathan Standing)