Tata's Misra backs Rio Tinto's offer to Riversdale shareholders

N.K. Misra, Tata Steel Ltd's group head for mergers and acquisition and its nominee on the board of Australialm series vertical mill manufacturers in egypt's Riversdale Mining Ltd, has recommended to "all shareholders" of the Sydney-based firm that they accept British miner Rio Tinto Plc's Australian $16-('724.80)-a-share cash offer to them.

With a 24.34% stake, Tata Steel is the largest shareholder in Riversdale, followed by Brazilian steel maker CSN, which owns 15.56%. Tata Steel also owns a 35% stake in Riversdale's key Benga coal mine in Mozambique. In a US $3.9 billion ('17,784 crore) bid, Rio Tinto has offered to buy all outstanding shares of the Australian Securities Exchange, or ASX-listed Riversdale, but its bid has strings attached to it. Unless it manages to acquire minimum of 50% stake in Riversdale, Rio Tinto has said it wouldn't buy any share at all. "In the absence of a superior offer", other directors of the Africa-focused coal miner last month recommended that...