deal clincher, page-4

RIO, surely you know by now that the $16 bid you put on the table has completely underwhelmed RIV share holders and is seen as laughable, is the $16 bid an administrative error and should it really have been $18? one can only ponder... About time you either put a realistic $18+ bid on the table or take a walk and we can add the RIV fiasco to your growing list of failed M&A


IMO, If RIO raises its offer "just a touch" to $18 they may reach the 50% they need for a "win", if the offer is less, the likely outcome is RIO will join TATA and CSN as a major share holder (I think they will retain a stake).

Not sure any pressure will be put on TATA or CSN if RIO walks, it just means RIV can get on with developing this world class deposit.

Im still holding, a short term drop in the sp equates to a buying oppurtunity and mid term $$ when the RIV sp hits $20+.

hcr

Article in today Spectator

Rio Tinto, Riversdale Mining,

Rio Tinto is still trying to claw its way into Riversdale Mining�s share registry, and with only 17.86 per cent of the target so far secured there is talk that the suitor may have no choice but to raise its offer a touch. Interestingly, Rio told the market last Friday that it had acquired a 19.14 per cent stake in Riversdale only to retract the statement later in the day. Rio�s correction said that it had overstated its stake in Riversdale by three million shares, about 1.8 per cent, due to an administrative error. Rio�s statement came as one of Riversdale�s shareholders, US hedge fund Sumana Capital, said it had reduced its stake in the miner by 1 per cent to 5.4 per cent. Rio is playing a delicate game here: on one hand it can choose to let the bid lapse and put the pressure back on Riversdale�s major shareholders Tata Steel and Brazil�s CSN. Both want Riversdale�s coal and would probably prefer the likes of Rio to run the projects. Conversely, Rio would presumably like to chalk up a win in its first M&A move since the Alcan fiasco and a sweetened offer along with the promise of a board seat or two could be enough to encourage Tata and CSN to throw some of their shares Rio�s way.