CSN increases stake in Rio Tinto target Riversdale Mining

Brazilian steelmaker CSN has raised its stake in Rio Tinto target Riversdale Mining, potentially complicating the Anglo-Australian mkitchen sink grinderajor's bid for the coal developer. The move raises a hurdle for Rio Tinto in its first major acquisition attempt since the global financial crisis and adds to mergers and acquisitions excitement surrounding coking coal miners, amidst an expected pickup in demand for steelmaking materials as the world economy rebounds.

In a regulatory statement, CSN said its holding in Riversdale was 17.58 per cent at February 8, up from 16.29 per cent at November 24. Rio Tinto has offered $16 cash per share for Riversdale, which has a 14 billion-tonne coal resource in north-western Mozambique. Since the start of February, the Brazilian company has spent $76.2 million at an average cost of $15.96 per share buying 4.8 million Riversdale shares, with roughly half of the holding bought at Rio’s offer price...