Rio Tinto in talks to salvage A$3.9 billion bid for Riversdale

MELBOURNE (Reuters) – Global miner Rio Tinto (RIO.AX: Quote, Profile, Research) is negotiating with one of two major shareholders in Riversdale Mining (RIV.AX: Quote, Profile, Research) to secure a majority stake in the Africa-focused miner.

Rio Tinto has launched a A$3.9 billion ($4 billion) takeover bid for Riversdale, conditional on at least 50 percent acceptances, but has so far secured only about 41 percent.

Rio Tinto’s lawyer said in a letter released to the Australian stock exchange on Tuesday that Rio “genuinely believes that an outcome of those discussions is likely to emerge during the course of this morning.” The letter was released by Riversdale.

$1 = 0.976 Australian Dollars)

(Reporting by Sonali Paul; Editing by Mark Bendeich)

Rio Tinto in talks to salvage A$3.9 billion bid for Riversdale