Rio Tinto plans to take on the combined might of India’s Tata Steel and Brazil’s CSN in Aussie coal miner Riversdale. The world’s second largest mining company today agreed to keep whatever shares it got from a takeover offer to the shareholders of Riversdale and dropped the condition that its must get 50 per cent stake to complete the transaction.

Rio has so far acquired 41.04 per cent stake in Riversdale. Today it dangled a bet to pay half a dollar more to the shareholders if its holding reaches 47 per cent by April 6 when the offer closes. It has also clarified that it will hold on to whatever it has got so far.

Two major shareholders of Riversdale, Tata Steel with 27.1 per cent and CSN with 19.9 per cent stakes, have so far given the cold shoulder to Rio. Together they hold 47 per cent, effectively spoiling Rio’s chances of crossing the 50-per-cent mark.

• [Editor:editor]