Rio in last-ditch bid for Riversdale

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The Independent Online

Rio Tinto has changed its tactics in a desperate effort to push through its A$3.9bn (£2.5bn) bid for Australia's Riversdale Mining. Rio has extended the timetable to 6 April and said it would raise the price if it secures more than 47 per cent of the company.

Two major Riverdale shareholders – India's Tata Steel and Brazil's CSN – have held out against the bid and so far Rio has managed to win just 41 per cent of Riversdale's stock. Analysts were speculating yesterday that the UK based miner was betting that Australian index investors holding 7 per cent of Riversdale would sell if Rio got 47 per cent and it fell out of the index.