Riversdale Mining backs increased Rio Tinto takeover offer

Riversdale Mining head Steve Mallyon has backed Rio Tinto’s increased offer for the coal company, warning investors there was no hint of a competing bid, The Wall Street Journal reported.

The global giant today said it would increase its offer to $16.50 a share from $16 a share, if it gained more than a 50 per cent interest in the Mozambique-focussed company by March 23.

Rio said it would not increase its offer beyond that point unless there was a competing proposal.

“We continue to recommend the Rio offer, in the absence of a superior proposal,” Riversdale Mining managing director Steve Mallyon told The Australian Online today.

“It has been three months since they launched their offer and there has been no indication to us of any competing offer.

“Rio Tinto are a class-act and they can compress the development time of the project, delivering it quicker, and with less stress, than we could.”