Global miner Rio Tinto said it would go ahead with its A$3.9 billion ($4 billion) takeover offer for Riversdale Mining even if it ended up with a minority stake in the Mozambique-focused coal miner. The offer, announced in December, was originally conditional on at least 50 percent acceptances, but so far Rio Tinto has secured only about 41 percent in its third major deal attempt since a badly timed $40 billion takeover of Alcan in 2007.
Rio was locked in talks with one of Riversdale's top shareholders, Brazil's biggest steel maker CSN, on Tuesday trying to secure a majority stake. Tata Steel is the other major shareholder in Riversdale. CSN said during a conference call that it was still in talks with Riversdale, but that it did not have any immediate plans to sell its stake in the firm because it sees the asset as "strategic."
"(CSN) wants to keep (the asset) and we recognise the need to have a strong operating partner with ability" to develop Riversdale, Chief Financial Officer Paulo Penido Marques told analysts on a conference call. CSN increased its stake in Riversdale to 19.9 percent this year. Rio Tinto revised its plan on Tuesday, saying it would pay those who had accepted its offer A$16 a share, and if it reached a 47 percent stake by April 6, it would pay A$16.50.