RIV Riversdale Fpo

Rio Tinto PLC (RIO) said Tuesday its interest in takeover target Riversdale Mining Ltd. (RIV) has risen to 44.31%, taking it closer to the commanding position it has set as a threshold for a sweetened offer that values the Africa-focused coal producer at close to A$4 billion.

The Anglo-Australian company a day earlier had said further acceptances for its offer had taken it to a 43.14% stake in Sydney-based Riversdale, still shy of the 47% target it has set by late Wednesday if shareholders are to receive A$16.50 a share. Rio a week ago declared the offer unconditional, but said that if it doesn't reach its target the offer price stands at A$16 a share.

Rio's attempts to acquire Riversdale and with it two major developing coking coal projects in an area of Mozambique attracting interest from mining and steel companies from around the world has dragged on since December.

The offer has been extended four times and raised once, and Rio last week failed to secure the more than 50% stake in Riversdale it had previously been chasing. Rio now wants a stake greater than that of the next two largest shareholders--steel producers Tata Steel Ltd. (500470.BY) of India and Cia. Siderurgica Nacional (SID) of Brazil, which together own 47%.

Officers at CSN have said the company intends to keep its investment in Riversdale as a "hedge" to cover part of its own coking coal needs. Tata has signed an agreement for 40% of the coal produced by Riversdale's Benga mine, which is scheduled to begin production this year, and has a director on Riversdale's board who accepted Rio's bid.

A successful takeover would mark Rio's first major acquisition since the US$38 billion acquisition of Canadian aluminum producer Alcan Inc. at the height of the commodities market in 2007.

-By Robb M. Stewart, Dow Jones Newswires; +61 3 9292 2094; robb.stewart@dowjones.com

Riversdale Mining (ASX:RIV)
Historical Stock Chart
Von Jun 2024 bis Jul 2024

Riversdale Mining (ASX:RIV)
Historical Stock Chart
Von Jul 2023 bis Jul 2024