Rio Tinto declares Riversdale bid unconditional, reportedly in talks with CSN

Tuesday, 29 March 2011 17:22:31 (GMT+2)   -  

Tags: coking coal , raw mat , Australia , Brazil , UK , Mozambique , Africa , Oceania , Europe , South America , Tata Steel , Rio Tinto , M&A , mining , East Africa , European Union | similar articles » SteelOrbis News

On March 29, Anglo-Australian iron ore giant Rio Tinto Group declared its AU$3.9 billion takeover bid for Africa-focused Australian coal miner Riversdale Mining Limited (Riversdale) unconditional, but will increased its AU$16 offer price to AU$16.50 per share if it obtains an interest in more than 47 percent of Riversdale shares by a new deadline on April 6, 2011.
 
Rio Tinto's previous minimum target was 50 percent of Riversdale stock by the March 28 deadline.
 
The move indicates that Rio Tinto is now aiming to get more shares than two the largest shareholders of Riversdale, i.e., Tata Steel and CSN, which recently increased their stakes in Riversdale to 27.1 percent and 19.9 respectively, and own 47 percent together. If it fails to reach the new threshold, Rio Tinto will pay Riversdale shareholders only AU$16 a share.
 
As of March 29, Rio Tinto has increased its shareholding in Riversdale to 41.04 percent, including acceptance facilities.
 
Citing Riversdale's filing to the Australian Stock Exchange, media reports stated that Rio Tinto has informed the company that it is in discussions with "one of major shareholders",  and suggested that Rio Tinto is negotiating with Brazilian steelmaker CSN to secure a majority stake in the coal company.
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