Rio raises bid for Rivers­dale

Townsville Bulletin - - Investor -

RIO Tinto Ltd has in­creased its of­fer price for Rivers­dale Min­ing Ltd and ex­tended the of­fer pe­riod in what the min­ing gi­ant said would be its fi­nal bid. A slow take-up prompted Rio Tinto to in­crease its of­fer price for the Mozam­bique-fo­cused coal miner to $ 16.50 from $ 16, pro­vided the suitor gains more than a 50 per cent in­ter­est in Rivers­dale by March 23. The price would not go be­yond $ 16.50 un­less a ri­val bid emerged, Rio Tinto said. Rivers­dale’s board has backed the bid, with Rio’s cur­rent stake about 17 per cent. But, ma­jor Rivers­dale share­hold­ers In­dia’s Tata Steel and Brazil­ian steel­maker CSN, which in­creased their stakes to a com­bined 47 per cent, have re­sisted Rio Tinto’s move, with an eye to pro­tect­ing their in­ter­ests in coal projects in Mozam­bique. Rio Tinto en­ergy chief ex­ec­u­tive Doug Ritchie said Rivers­dale share­hold­ers would not get a bet­ter bid and risked their share price re­turn­ing to pre-bid lev­els if they did not take up the of­fer.

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