OWN CORRESPONDENT, Melbourne | Tuesday 09.00am.
Rio Tinto Plc said it was studying the value of Japanese steel mill incentives behind Anglo American’s A$3.bn offer for North Ltd in deciding whether to outbid the rival miner.
Anglo American Plc trumped Rio’s A$2.8bn hostile bid last week with the help of promises from North’s Japanese partners to buy more coal and iron ore from Anglo and shoulder more of the costs of the West Angelas iron ore project.
”We’re looking very closely at what value is left in North for Rio Tinto since the Japanese steel mills have offered Anglo the inducements to make this bid,” a Rio Tinto spokesman told Reuters in the company’s first comment on Anglo’s bid.
He declined to say how quickly the company would respond, but analysts said Rio would probably wait to see the details behind Anglo’s bid when it sends its offer to North shareholders in the first week of August.
Investors are clearly expecting another bid, having pushed North’s share price up another six cents to A$4.48, 23 cents above Anglo’s offer and 68 cents above Rio’s. Rio’s shares ended 14 cents higher at A$25.96. – Reuters