Rio Tinto PLC (RIO) again extended the deadline Wednesday in its takeover bid for Riversdale Mining Ltd. (RIV.AU) after securing just under half the shares in the Africa-focused coal producer.

Rio Tinto said it has received acceptances for a 49.49% stake in Sydney-based Riversdale, passing a target of more than 47% and triggering an offer price of 16.50 Australian dollars ($17.12) a share that values Riversdale at almost US$4 billion. Had Rio failed to reach this level, the offer price would have reverted to A$16.

A successful takeover would mark Rio's first major acquisition since the ill-timed US$38 billion takeover of Canadian aluminum producer Alcan Inc. at the height of the commodities market boom in 2007 and give it control of two major developing coking coal projects in an area of Mozambique that holds the promise of rivaling Australia's Bowen Basin in Queensland. The assets would expand Rio's coking coal operations from Australia at a time when demand for the key ingredient in steel making is strong.

Rio said the offer period has been extended two weeks to April 20 and it encouraged other shareholders to accept.

The offer had already been extended four times since it was made in December after Tata Steel Ltd. (500470.BY) of India and Cia. Siderurgica Nacional (SID) of Brazil both increased their stakes to together own 47% of Riversdale. Rio last week said it would continue with the offer after failing to secure the more than 50% stake it had been chasing, and said it would settle for being a major shareholder.

Officers at CSN last week said the company intends to keep its 19.9% investment in Riversdale as a "hedge" to cover part of its own coking coal needs. Tata, in addition to its 27.1% shareholding, 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.

If Rio manages to acquire more than 50% of Riversdale it will be able to push ahead with its plans, including selling Riversdale's South African coal operation, consolidate its head office with its own and seek the resignation of Riversdale's directors.

Riversdale in January estimated it needed at least US$400 million for its share of costs for the second and third stages of the Benga project and at least US$2.9 billion for the Zambeze project. Benga has an identified coal reserve of 502 million metric tons and a resource of 4 billion tons and Zambeze, which is at an earlier stage of development, has an estimated resource of 9 billion tons.

Riversdale's shares ended the day up 0.3% at A$16.42, while Rio dipped almost 0.1% to A$86.10.

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