Tom Albanese, the chief executive of Rio Tinto, will continue with investor meetings in North America next week after declaring that BHP Billiton’s $140 billion (£69 billion) takeover proposal to combine the two companies was “dead in the water”.

Mr Albanese’s comments came after Baosteel, of China, another potential bidder for the group, made clear that it would not be making any offer for the miner, saying that it lacked the financial clout to do so. He is in the middle of a round of intensive investor meetings between Rio Tinto’s chief executive and its shareholders. Mr Albanese also revealed that he had rebuffed other approaches that had emerged since BHP made its approach last month.

“There just wasn’t enough value, so it is dead in the water,” Mr Albanese told CNBC. On other potential bidders, Mr Albanese said: “Lots of people have been calling, but we have not been engaging.”

A merger between BHP and Rio would create a company with 27 per cent of the world’s market for iron ore and control of much of the global flow of aluminium, coal, copper, uranium and diamonds.

A spokesman for BHP refused to comment on Mr Albanese’s opinion. He said: “We think that this [BHP’s offer] is a logical and compelling proposal and we would like to engage with Rio Tinto’s board in discussion with it.”

BHP’s shares rose by 30p to £16.49 as Rio Tinto’s shares rose 72p to £56.55.

A spokeswoman for Rio reiterated the chief executive’s stance: “Our position hasn’t changed,” she said. “The bid is dead in the water, but it has been for weeks really.

“It is a proposal that our board considered and rejected on the grounds of value. We have a great future as an independent business and that’s what we intend to get on with doing.”

Since BHP’s bid emerged last month Rio Tinto has consistently repeated that BHP’s proposal significantly undervalued its operations and growth prospects. Mr Albanese stopped short of saying that Rio Tinto was not for sale at any price, but he reiterated that BHP Billition’s indicative offer was “a couple of ballparks away”.

Rio is now focusing on its own strategy. “Organically, we can do great things,” he said.

The company is aiming to secure more of the Chinese market, now that it has acquired Alcan, the Canadian aluminium group. “This year they [the Chinese] are consuming 30 per cent of the world’s aluminium and it just keeps going,” Mr Albanese said.

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