Rio Tinto ups bid for Riversdale

Mining giant Rio Tinto has upped its bid for Riversdale in its latest attempt to woo shareholders of the Australian coal miner.

Rio said it would raise its offer from $16 (£10) a share to $16.50, valuing Riversdale at about $3.9bn, if more than 50% of shareholders accepted the bid by 23 March.

The improved bid offers “a highly attractive premium”, Rio said.

Sydney-based Riversdale has large coking coal projects in Mozambique.

‘Growing support’

Rio said there had been no sign of a competing bid since it first offered $3.5bn at the beginning of December.

It added that it would not increase its offer again in the absence of any competing bids.

“The choice for Riversdale shareholders is clear – accept the offer or risk seeing their share price return to pre-bid levels,” said Rio Tinto Energy chief executive Doug Ritchie.

“There is no reason to delay acceptance.”

India’s Tata Steel is the largest shareholder in Riversdale and there had been speculation that it, and perhaps Brazil’s Vale, might make a counter offer. None has been forthcoming.

“I can say that from the calls [to institutional shareholders] that I’ve made in the last few hours, there is some growing support the Rio Tinto,” said Riversdale chief executive Steve Mallyon.