Rio plays down Ivanhoe bid speculation Peter Ker December 14, 2011 - 10:17AM .Rio Tinto has today sought to douse expectations of an imminent takeover bid for its Mongolian bedfellow Ivanhoe Mines, in the wake of a favourable arbitration result.
An independent arbiter this week ruled in Rio's favour on two disputed matters between the resources giant and Ivanhoe, including a finding that Rio's 49 per cent stake in Ivanhoe cannot be diluted by the issuing of further Ivanhoe shares.
The development has raised expectations that Rio may pursue a controlling stake in Ivanhoe as soon as a standstill clause limiting Rio to no more than 49 per cent of Ivanhoe expires on January 18.
Advertisement: Story continues below But Rio sought to convince the market this morning that such a strike was not imminent.
''Rio Tinto may seek opportunities to increase it shareholdings in Ivanhoe to a majority position but currently has no intention of making a full takeover bid for Ivanhoe's shares,'' Rio said in a statement.
But Rio said it reserved the right to change its mind in the future, depending on market and tax conditions, and the performance of Ivanhoe's share price and general business.
The companies are jointly developing the massive Oyu Tolgoi mine in Mongolia, with Rio Tinto now working as mine manager at the Gobi desert project.
Meanwhile the arbitration matter may not yet be settled, with Ivanhoe declaring that its legal counsel was still evaluating ''the implications'' of the result.
Ivanhoe shares plummeted on Canadian markets overnight.
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