Tata steel has 24% and CSN 19.9% of RIV shares, surely they must be in the drivers seat in negotiating supply deals with RIO.
An alternative is for TATA or CSN to T/O RIV and get one of the the major mining contrating companies in to develop and operate the resource for them, which is probably what RIO intends to do anyway!
Still holding, if riv sp gets ~ 15 will start buying and take a punt that Rio will declare the offer open, after all they have FRB approval (unlike bhp and the Canadian potash debacle) they just need to convince us shareholders and Tata and CSN to hand over our shares or a portion thereof.
If it alll falls apart and RIO walks my view is RIV will be well over 16 within a couple of years anyway.
Not investment advice only my opinion
hcr
Article from Reuters
MUMBAI, Feb 15 (Reuters) - Tata Steel (TISC.BO) said its margins would remain under pressure due to rising raw material prices, adding that it was in talks with Rio Tinto (RIO.AX) to ensure coal supplies from Africa-focused miner Riversdale (RIV.AX).
The world's No. 7 steelmaker on Tuesday said quarterly net profit more than doubled, driven by demand and pricing in Europe and robust growth at its Indian operations, but the company lagged estimates as higher raw material costs squeezed margins.
The $500 billion global steel sector has been caught in a margin squeeze since the middle of 2010, when raw material costs began increasing and steel prices dropped as activity slowed. While demand is improving from the auto sector, the other key market, construction, is struggling to pull clear of the crisis.
Tata Steel said it expected steel demand in Europe to rise 3 to 5 percent this year and demand in India to grow 10 to 12 percent, but managing raw material costs would be a key challenge.
"Margins are under pressure because we are consuming raw materials at inflated prices," Karl Kohler, head of Tata Steel's European operations, told reporters after the results announcement.
"Selling prices are recovering but the position needs to be maintained as impact of raw material costs is increasing."
Managing Director Hemant Nerurkar said Tata Steel was interested in securing coal supplies from Riversdale, in which it owns a 24 percent stake. Riversdale has received a $3.9 billion bid from Rio Tinto, which was backed by Tata Steel's representative on Riversdale's board.
"We are basically interested in securing coal supplies. We are discussing various options with Rio," Nerurkar said.
Tata Steel acquired Corus, Europe's second-largest steelmaker, for $13 billion in 2007, marking the largest overseas acquisition made by an Indian company so far.
European operations account for two-thirds of Tata Steel's global capacity of about 30 million tonnes, while the Indian operations contribute a quarter. It also has units in Thailand and Singapore.
Most global steelmakers have suffered sharp falls in December quarter profit. Last week, the world's largest steelmaker ArcelorMittal (ISPA.AS) reported profit lower than the previous quarter, but forecast a rebound in demand and prices at the start of 2011.[ID:nLDE71703X]
POSCO (005490.KS), Nippon Steel (5401.T) and JFE (5411.T), some of the largest steelmakers, all suffered sharp falls in October-December earnings due to pricey raw materials and tepid demand.
Tata steel has 24% and CSN 19.9% of RIV shares, surely they must...
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