Global miner Rio Tinto on Thursday made a bid of Australian $3.9 billion to take over Africa-focused Riversdale Mining, in which India's Tata Steel has 24.2 per cent stake, the single largest holding. The Rio Tinto's offer price of Australian $16 a share was recommended by all of Riversdale's board, barring the director appointed by Tata Steel. An Indian consortium International Coal Ventures Ltd. (ICVL), comprising five PSUs — Steel Authority of India, Coal India, NTPC, RINL and NMDC — is also reportedly in the race for Riversdale. It could not be independently verified.
Sources, however, said that a meeting of ICVL members was under way to discuss a possible bid and might even look at hiring merchant bankers for the same. “Rio Tinto has entered into pre-bid agreements in relation to 14.9 per cent of Riversdale's current shares on issue,” the mining major said in a statement.
N. K. Misra, Tata's nominee on the Riversdale board, abstained from voting on the Rio Tinto's bid. “We noted the development. At this point we don't have any comments,” a Tata Steel spokesperson said.
