Australia's S&P/ASX 200 Index Drops, Led by Rio Tinto Group, BHP Billiton

(Bloomberg) -- Australian stocks fell. Rio Tinto
Group dropped for a second day on concern its $38.1 billion bid
for Alcan Inc. will increase its debt, while BHP Billion Ltd.
declined on concerns recent gains have outstripped earnings.

``With Rio, there's no doubt takeovers are generally more
positive for the acquired stock than the acquirer,'' said Shane
Oliver, who helps manage the equivalent of $83 billion at AMP
Capital Investors in Sydney. ``The market may be concerned about
the increased debt factor.''


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