Tata Steel Ltd. (500470.BY) isn't averse to Rio Tinto Ltd.'s (RIO.AU) bid for Riversdale Mining Ltd. (RIV.AU) as it considers Rio Tinto "a well-managed company," a senior executive at the Indian steelmaker said Monday.

"We have invested in Riversdale not for financial incentives, but for securing coking coal supplies for our Indian and European operations... so good management of Riversdale is essential for us," Managing Director H.M. Nerurkar told reporters at the site of the company's plant in the eastern Indian town of Jamshedpur.

He said the Tata group will cooperate with any company that eventually takes over Riversdale.

Nerurkar added that the agreement with Riversdale to offtake 40% of the output in Mozambique's Benga mines could be renegotiated once new management takes over the company. He didn't elaborate.

He said that Tata Steel hasn't yet decided on making a bid for Riversdale. "One needs deep pockets for making a counter bid... we are at present watching the situation closely."

-By Prasenjit Bhattacharya, Dow Jones Newswires; +91-22-6145-6121; ameya.karve@dowjones.com
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