Rio Tinto to give revised Glencore offer 'appropriate consideration'

PERTH (miningweekly.com) – Diversified major Rio Tinto on Monday confirmed that it had received an improved offer from fellow diversified miner Glencore for its Australia subsidiary Coal & Allied (C&A).

Glencore at the end of last week upped its offer from its initial $2.55-billion to $2.67-billion after Rio Tinto backed a $2.45-billion offer from Yancoal for the C&A assets, with Yancoal's offer already having received Japanese regulatory approval.

Rio on Monday told shareholders that the company would give the new Glencore offer “appropriate consideration” and would give feedback to the company's shareholders ahead of the company's general meeting scheduled for June 27.

If the company formed the opinion that the revised Glencore offer was superior to the existing Yancoal offer, the Rio board would adjourn the planned general meeting. If this step was taken, Yancoal would have two business days in which to present a counter offer.