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  "documentTitle": "Rio Tinto (RIO)",
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  "presentationDate": "2024-12-01 00:00:00",
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  "notes": "Uses a direct quote from the CEO to highlight a contradiction between stated strategy and actual execution.",
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      "kind": "callout",
      "text": "Arcadium: A Case Study (October 2024)",
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      "kind": "callout",
      "text": "If scrip acquisitions are “entirely doable”, why have 100% of Rio Tinto’s acquisitions been funded with cash?",
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      "text": "M&A Consideration Split: Rolling Average since 1995",
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      "text": "If scrip acquisitions are \"entirely doable\", why have 100% of Rio Tinto's acquisitions been funded with cash? Why have 99.5% of all acquisitions by all DLCs been funded with cash? Which line of stock would even be issued given the level of price disparity between Rio's Plc and Ltd shares? How can any equity issuance be fair and equitable to both Plc and Ltd shareholders, and also attractive for the target?",
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      "text": "cash acquisition percentage: 100%",
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      "kind": "quote",
      "text": "\"We can absolutely do scrip deals out of the DLC... We can buy from the DLC, we can buy from the Plc, from the Ltd, we can do a lot. That is absolutely not an excuse for M&A, but M&A, of course, has to make sense in itself.\"",
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      "kind": "quote",
      "text": "\"I must say we didn't discuss that much because it just adds a layer of complexity... It's not going to make a material difference from our point of view. When we became clear about that, the perfect match for us was to get into Arcadium, we focused in on a cash deal... and therefore didn't choose to open up for further complexity.\"",
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      "text": "\"We can absolutely do scrip deals out of the DLC... We can buy from the DLC, we can buy from the Plc, from the Ltd, we can do a lot. That is absolutely not an excuse for M&A, but M&A, of course, has to make sense in itself.\" — Jakob Stausholm, CEO, 31 July 2024; \"I must say we didn't discuss that much because it just adds a layer of complexity... It's not going to make a material difference from our point of view. When we became clear about that, the perfect match for us was to get into Arcadium, we focused in on a cash deal... and therefore didn't choose to open up for further complexity.\" — Jakob Stausholm, 9 October 2024",
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      "kind": "source-note",
      "text": "Source: Company filings, Bloomberg, S&P Capital IQ (1) Excludes tender offers for minority shareholders in existing listed subsidiaries which included a cash or scrip alternative",
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      "kind": "title",
      "text": "M&A: \"We Can Absolutely Do Scrip Deals Out of the DLC\"",
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