Rio Tinto half way to Riversdale success

14th Mar 2011 07:54

Rio Tinto's improved $3.9bn (£2.4bn) offer for coal miner Riversdale is a step nearer reality as the sector heavyweight increased its stake in the Mozambique-focused to more than a quarter.It told the Australian Securities Exchange the number of shares it either owned or had received acceptances in respect of the offer had risen to 26.13% by Friday night from 17.86% previously.Last week, the company increased its bid from $16 a share to $16.50, but only if more than 50% accept the deal by 23 March. Shareholders owning 8.37% of Riversdale have backed the deal, and Rio's "relevant interest" is up to 17.76%.But there's still no word from Riversdale's two biggest shareholders - India's Tata Steel and Brazil's CSN - who between them own 47% of the business.Institutions have been reluctant to commit to the deal without first knowing what the big two have decided.