rio bids for riversdale @ $16.50

Rio Tinto bids for Riversdale
EXCLUSIVE Brett Clegg From: The Australian December 21, 2010 10:17AM


RIO Tinto has formalised a bid for Riversdale Mining at what is believed to be pitched at $16.50 a share.
Shares in the Mozambique coal miner were placed in a trading halt this morning as the two parties thrashed out non-monetary terms, including pre-bid agreements that would prohibit Riversdale from soliciting rival bids.

On December 6, Riversdale said it was in discussions with miner Rio Tinto about selling the company for $15 per share.

Riversdale shares last traded at $16.30, but were trading at $14.10 before the statement.

Riversdale is developing as a divesified mining financier, with its major operation the Zululand anthracite colliery in South Africa.