Rio Tinto May Try To Acquire SID's Riversdale Stake

Still short of the 50% threshold of support it wants for its $4 billion takeover offer for Australia's Riversdale Mining, Rio Tinto RIO, the world's second-largest mining company, may try to acquire Brazil's Companhia Siderurgica Nacional's SID stake in Riversdale, Bloomberg News reported citing two people with knowledge of the matter. On Monday, Rio said it received support equivalent to 39.66% of Riversdale shares, up from 38.38% last week, but still short of the 50% Rio is hoping to secure. SID owns 19.9% of Riversdale. India's Tata Steel owns 27.1% and both companies have recently been upping their Riversdale investments to gain positions of power in negotiating for coking coal contracts. Rio confirmed it's in talks with a major Riversdale shareholder after Riversdale share were halted during Sydney trading, but Rio declined to specify about what company it was referring, Bloomberg reported. Tata has previously said it wants to keep its interest in Riversdale. Riversdale has a coal mine in South Africa and is developing two mines in Mozambique, which have made the company an attractive target for Rio. While Rio is a major coal producer, it does lack exposure to coking coal, which is used by steelmakers, and the purchase of Riversdale would help the company boost its coking coal exposure. Rio said the outcome of the talks with the Riversdale shareholder may be known sometime during the course of the Sydney business day, Bloomberg reported.