BHP Billiton, the world's largest mining group, yesterday unveiled details of the cost savings and earnings it believes its proposed takeover of rival Rio Tinto would deliver.

BHP Billiton, the world's largest mining group, yesterday unveiled details of the cost savings and earnings it believes its proposed takeover of rival Rio Tinto would deliver.

Rio Tinto last week rejected BHP Billiton's three-for-one share offer that Dealogic calculated to be worth as much as US $149bn (£75bn).

BHP Billiton's justification for the deal - which it said was worth $3.7bn in savings and earnings - was not accompanied by any increase in the offer.

In its statement to the Australian Securities Exchange, it said the deal is the most logical and compelling consolidation opportunity for both firms.

"The two companies each have portfolios of large-scale, low-cost, long-life assets that are highly complementary and, when combined, would be without peer," BHP Billiton stated.

Rio Tinto reiterated that the BHP Billiton offer undervalues the company and said there is nothing new in a proposal it has already rejected after careful consideration, Dow Jones Newswires reported, citing an unnamed spokeswoman.

Alex Passmore, a mining analyst with Perth, Western Australia-based broker Patersons Securities, said BHP Billiton's statement yesterday would do little to change Rio Tinto's mind about the offer.

"I think given the synergies that they have outlined, Rio will want more," he said.

BHP Billiton said its offer valued Rio Tinto at $153bn, representing a 25% premium, based on closing prices on October 31.

The Melbourne-based miner said bringing together the two huge Anglo-Australian resources companies would deliver unique opportunities for value creation, including more efficient development of their twin iron ore operations in the Pilbara region in the state of Western Australia and the streamlining of Australian coal operations, where output is currently crimped by infrastructure bottlenecks. - AP