re: Ann: RIO: Institutional Acceptance Facili...
Melbourne, Australia --- MININGREVIEW.COM --- 17 March 2011 -
The number of shareholders in Mozambique-focused coal miner Riversdale Mining who are backing Rio Tinto's sweetened US$4 billion bid for the Australian-based company have risen 8.27%, taking the Anglo-Australian miner to a combined total of 26.13% of Riversdale?s voting rights.
In a notice to the Australian Securities Exchange, Rio Tinto said it had a relevant interest ‒ indicating outright ownership or a call option ‒ over 17.76% of Riversdale's shares, while a further 8.37% of shares had been put into an institutional acceptance facility that would turn the shares over to Rio if the bid passed the 50% threshold.
Last week Rio raised its original US$16-a-share bid to US$16.50 amid lacklustre take-up from Riversdale's shareholders. The company's two largest investors ‒ Indian and Brazilian steelmakers Tata Steel and CSN ‒ hold a combined 47% of voting rights, giving them an effective lock over any takeover offer. The takeover is due to close on 1 April, although the US$16.50 offer lasts only until March 23.
RIV Price at posting:
$15.90 Sentiment: Hold Disclosure: Held
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