Rio Tinto bids for Riversdale Mining
Riversdale shares rise by over 15 percent
By CFOWorld.co.uk | CFO UK | Published 12:05, 06 December 10
Mining company Rio Tinto has bid a $3.5 billion (£2.2 billion) for Riversdale Mining, pushing shares in Riversdale up by over 15 percent.
Anglo-Australian Rio Tinto’s offer could provoke a bidding war. Other interested parties may include Brazilian company Vale and Indian company Tata Steel, Riversdale’s major stake-holder.
Riversdale’s main activities are in Africa, with hard-coking projects in Mozambique which some experts forecast could supply up to 10 percent of the world’s coke market.
Riversdale confirmed in a statement that the two companies have held discussions “concerning a possible transaction at the corporate level for indicative consideration of $15.00 per Riversdale share ... While discussions with Rio Tinto are ongoing, there is no certainty that Rio Tinto or any other party will proceed with any proposal for the acquisition of Riversdale”.
The buyout would value Riversdale of A$3.5 billion.
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