India may decide next week whether to counter Rio Tinto Group’s A$3.9 billion ($3.9 billion) offer for Riversdale Mining Ltd., said a group of state-run companies asked by the government to consider putting forward a proposal.
International Coal Ventures Ltd., combining government-run metal and energy companies, may consider a bid for the Sydney- based coal producer with mines in Mozambique at a board meeting in New Delhi on Jan. 27, Chairman C.S. Verma said.
“Our bid price for Riversdale will be higher than Rio Tinto’s if it is to be a viable bid,” Verma said in an interview in Kolkata today, declining to elaborate.
Indian companies are seeking coal mines overseas to secure raw material supplies for making steel and generating power as international costs increase. Rio Tinto, which has offered A$16 a share, yesterday said it received unconditional approval from the Australian Treasurer to buy Riversdale. The Riversdale board has recommended the offer to shareholders, Rio said Jan. 10.
Tata Steel Ltd., which holds 24.2 percent of Riversdale according to data compiled by Bloomberg, said on Dec. 27 it had no “discomfort” with Rio’s offer.
Coal India Ltd. holds about 28 percent of ICVL. Steel Authority of India, the nation’s second-biggest producer of the metal, also has 28 percent, while NTPC Ltd., its largest power generator, NMDC Ltd., its top iron-ore producer, and steelmaker Rashtriya Ispat Nigam Ltd. own about 14 percent each.
“Once the proposal goes through, funding will not be a problem because all of us have money,” Coal India Chairman Partha Bhattacharyya said today.
Subscribe to:
Post Comments (Atom)
Posts
No comments:
Post a Comment