Tata Steel, CSN hold out to Rio Tinto's $3.9-bn takeover of Riversdale
24 February 2011
Steelmakers Tata Steel and Brazil's Companhia Siderurgica Nacional (CSN) have so far refused to tender their stake to Rio Tinto's $3.9-billion takeover offer for Riversdale Mining, forcing the mining giant to extend its offer for the second time to 16 March.
Rio Tinto, the world's third-largest miner today extended the offer period for the second time by 14 days to18 March 2011 as it has yet to secure the 50.1 per cent acceptance from Riversdale's shareholders for its bid to go ahead.
Although Rio Tinto may get a majority stake, the mining giant will not get full control over Riversdale until one of Riversdale's two major shareholders agree to tender their stake to its offer.
On 24 December, Rio Tinto launched a formal A$3.9 billion ($3.9 billion) bid for Australian coal miner Riversdale in order to gain control of 13 billion tones of coking and thermal coal in Mozambique. (See: Rio Tinto launches $3.9 billion bid for Riversdale Mining)
All the directors of Riversdale barring one and a few institutional investors had agreed to tender their 14.9-per cent interest to Rio Tinto's offer.
Tata Steel holds a 24.21-per cent stake and a seat on the board of Riversdale abstained from voting on the deal.
Other stake holders in Riversdale are CSN with 16.29-per cent and San Francisco, California-based hedge fund Passport Capital with nearly 16 per cent.