UPDATE: Cia Siderurgica Nacional Upgrades Stake In Riversdale; May Complicate Rio Bid
09 Fevereiro 2011 - 1:18AM
Dow Jones News
Companhia Siderurgica Nacional (SID) has raised its stake in
Mozambique-focused coking coal developer Riversdale Mining Ltd.
(RIV.AU) by 1.3%, the Brazilian steelmaker said Wednesday,
potentially complicating a US$3.9 billion offer for the company by
Rio Tinto Plc (RIO).
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% at Feb. 8, up from 16.29% at Nov. 24.
Rio Tinto has offered A$16 cash per share for Riversdale, which
has a 14 billion-metric-ton coal resource in north-western
Mozambique. Since the start of February, the Brazilian company has
spent A$76.2 million at an average cost of A$15.96 per share buying
4.8 million Riversdale shares, with roughly half of the holding
bought at Rio's offer price.
"If you're buying stock close to the bid price, it's a clear
signal that you're not going to accept the bid," said Hayden
Bairstow, an analyst at CLSA in Sydney.
Another Sydney-based analyst, who is not authorized to speak to
the media and so asked not to be named, said: "I think they are
signalling that there is someone else out there who may bid."
However, Riversdale's shares on Wednesday fell to their lowest
level since Rio first announced talks with the company on Dec. 6
down 26 cents or 1.6% to A$15.74 at 0215 GMT, after 4.4 million
shares were traded at A$16 for A$70.2 million around 0038 GMT.
Riversdale shares had only dipped below Rio's A$16 offer price
to a low of A$15.80 on two brief occasions since the two companies
admitted they were in talks in early December, with the stock
rising as high as A$17.14 on Dec. 30.
Market participants have keenly watched the progress of Rio's
bid for Riversdale. It is Rio's first major takeover attempt since
its US$44 billion acquisition of Alcan Inc. in 2007, a deal which
saddled the company with debt as the global financial crisis was
starting to break.
It is also occurring against a backdrop of booming interest in
coking coal assets. Supplies of the commodity, used in steelmaking
blast furnaces, are expected to be sharply constrained as demand
for steel from emerging economies booms over the next decade.
Mozambique is anticipated to be one of the biggest growth
regions for exports of premium hard coking coal, which is currently
dominated by mines in Australia's Queensland state that have been
hard-hit by heavy rains over the past few months.
Alpha Natural Resources Inc. (ANR) last month offered US$7.1
billion to buy Massey Energy Co. (MEE), a miner with significant
coking coal assets in the U.S. Appalachian mountains.
Bairstow said that CSN may be attempting to use its holding in
Riversdale as a bargaining chip to ensure access to Riversdale's
coal production. Unlike Tata Steel Ltd. (500470.BY), Riversdale's
largest shareholder, CSN does not have a deal guaranteeing supply
from Riversdale, and could suffer if the company is subsumed into a
major diversified miner.
"CSN doesn't have an offtake agreement for any of the coal,
which is a strange position to be in," Bairstow said.
CSN is unlikely to be in a position to block a bid for
Riversdale, as Rio has said it would be happy with a majority
stake, in line with its controlling investments in Energy Resources
of Australia Ltd. (ERA.AU) and Coal & Allied Industries Ltd.
(CNA.AU).
However, the threat of bids above Rio's offer price may
encourage the company to offer concessions to major shareholders,
Bairstow said.
A spokesman for Riversdale said he knew nothing about CSN's
move, while spokespeople for CSN and Rio Tinto did not immediately
return requests for comment.
-By David Fickling, Dow Jones Newswires; +61 2 8272 4689;
david.fickling@dowjones.com
Coal & Allied Industries (ASX:CNA)
Gráfico Histórico do Ativo
De Ago 2024 até Set 2024
Coal & Allied Industries (ASX:CNA)
Gráfico Histórico do Ativo
De Set 2023 até Set 2024