On November 8 Rio Tinto (NYSE: RTP) rejected a bid from BHP Billiton (NYSE: BHP). The rejection did not kill the idea of merging the companies, but Rio maintained that the offer was too low. As Rio mounts a defense against BHP, it will be looking to return value to shareholders in a variety of ways. Rio vowed to raise dividends, pay down debt, find more savings in its recent Alcan deal, and increase production. While these goals may not be immediately achievable, Rio is putting pressure on BHP to up its bid. A combination of the two companies would create synergies in operations and in the use of port and rail facilities. The combined company would be the world's largest iron ore producer, aluminum producer, and coal shipper; a producer of 6% of the world's copper; the third-largest diamond producer; and a leading producer of many other materials. The anti-monopoly hounds are already barking at this merger and, if it does happen, some assets will probably have to be sold -- most likely in iron ore. Either way, Rio's shares will likely increase in value as a result of this offer.