CORRECT: Rio Tinto Looks To Replenish Board; Upgrades Riversdale Stake
04 März 2011 - 9:07AM
Dow Jones News
Rio Tinto Plc (RIO), which continues to lift its stake in bid
target Riversdale Mining Ltd. (RIV.AU), said Friday it has begun
the search to replenish its board as several directors, including
former British Airways Plc Chief Executive Rod Eddington, prepare
to retire.
The U.K.-headquartered company said non-executive directors
Eddington and Yves Fortier will retire from the board after the
annual shareholders meeting May 5, and independent director Andrew
Gould will serve another year before retiring after the 2012
meeting.
It said it was specifically looking for an Australian to succeed
Eddington, who headed British Airways until 2005 and was previously
managing director of Cathay Pacific Airways Ltd. (0293.HK).
Fortier was ambassador and permanent representative of Canada to
the United Nations from 1988 to 1992 and chairman of Alcan Inc.
until the Canadian aluminum producer was acquired by Rio Tinto in
2007 in a $38 billion deal.
"I am most grateful to Yves for his tremendous support during an
important transition period for Rio Tinto following the Alcan
acquisition," Rio Tinto Chairman Jan du Plessis said in a
statement. "I would also like to thank Rod for his significant
contribution and the Australian perspective that he has brought to
the boards since 2005."
Separately, the Anglo-Australian mining company said Friday its
interest in Riversdale had risen to 17.5% after being nudged up to
just shy of 17% earlier in the week, and one person familiar with
its A$3.9 billion bid for the Africa-focused coal company said
discussions with the two largest shareholders in Riversdale are
ongoing. Tata Steel Ltd. (500470.BY) of India and Cia. Siderurgica
Nacional (SID) of Brazil now hold 47% of Riversdale between them,
giving them a greater say in how the bid progresses.
Two other people familiar with the companies involved, who also
declined to be named, have said Tata and CSN are likely holding out
for a raised offer from Rio Tinto and are positioning themselves to
ensure they maximize access to coking coal, a key ingredient in
steelmaking.
A spokesman for Rio Tinto declined to comment on the bid.
Rio Tinto in December made a recommended cash offer for
Riversdale at A$16 a share and said it had secured acceptances for
about 14.9% of Riversdale's shares. It has twice extended the
deadline for its offer, last week pushing it out to March 18, and
it can continue to move the date if it chooses to.
Riversdale operates a colliery in South Africa and is developing
two major coal projects in neighboring Mozambique in an area that
is attracting interest from mining and steel companies from around
the world.
Tata Steel earlier this week said it had raised its stake in
Riversdale 2.9 percentage points to 27.1%. CSN has also raised its
stake, in February taking it to 19.9%. Listing rules prevent either
from increasing their holdings further for six months.
Spokesmen for Riversdale and Tata both declined to comment when
contacted. Riversdale has said its directors have all recommended
Rio Tinto's offer "in the absence of a superior proposal",
including director N.K. Misra who also is head of mergers and
acquisitions at Tata.
-By Robb M. Stewart, Dow Jones Newswires; +61 3 9292 2094;
robb.stewart@dowjones.com
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