tata steel says will hold on to riversdale, page-13

Mitis

RIO have a 50% minimum acceptance condition so they will NOT buy and pay you for your shares unless they get 50%...in which case they are then obliged to complete the purchase. However, RIO may waive the defeating conditions eg. the 50% minimum threshold and take up your acceptance anyway. It's in the document clause 7.6. If they did that they could settle for say 29% of RIV.

While on the other thread some are pointing out that another bid now looks unlikely...yes perhaps. However, what seems very likely judging from the price and volume action in trading since the bid was announced is the expectation that RIO will have to increase their offer price to be successful. That is what I am expecting anyway and although I sold some on market pre the bid announcement, I am holding now. The only downside in my opinion is that RIO withdraws its bid when the closing date is reached. That is very unlikely in my opinion...at the very least there will be an extension, and if the price stays well above the offer price as it is now, then an increase in the offer is on the cards.

RIO did not go into this to give up at the first hurdle. They want RIV and I am sure they have factored in to their strategy the possibility of increasing the offer and/or extending the acceptance date. If the price subsides to below the offer price then the many speculators who have been buying in recent weeks are going to do some dough.

regards
DF