Rio Tinto Extends Offer For Riversdale A Further Two Weeks

Rio Tinto PLC (RIO) Friday again extended the deadline of its takeover offer for Africa-focused coal producer Riversdale Mining Ltd. (RIV.AU) in a bid to mop up the few shares it hasn't secured or aren't held by India's Tata Steel Ltd. (500470.BY).

The London-based mining giant said in a statement to the Australian Stock Exchange it now holds slightly more than a 73% interest in Riversdale, leaving the free float of shares at just 0.33% of the total. Tata has a stake of slightly more than 26%, increasing its holding after Rio Tinto made its bid for Riversdale last December.

Rio Tinto said its A$16.50 a share cash offer for the Sydney-based coal company is now set to close after the Australian market closes on June 3. The offer has been repeatedly extended since it was first made, and was most recently set to close Friday.

Rio Tinto's offer values Riversdale at almost US$4 billion.

Since gaining control of Riversdale, Rio Tinto been tightening its control of the company, which is developing a significant deposit of coking coal in Mozambique and expects to begin production at a new mine there later in the year.

Riversdale said earlier this week that Niall Lenahan was stepping down as chief financial officer, making way for long-serving Rio Tinto employee Michael Jolley.

-By Robb M. Stewart, Dow Jones Newswires; +61 3 9292 2094; robb.stewart@dowjones.com

Riversdale Mining (ASX:RIV)
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