Rio Tinto makes $3.8-bn offer for Riversdale
Global miner Rio Tinto is talking to Australian-listed coal miner Riversdale about a higher $3.8-billion takeover bid, according to a media report, ahead of a possible bidding war for the African-focused target. Shares in Sydney-based Riversdale, which has previously confirmed it was talking to Rio, were placed in a trading halt on Tuesday ahead of an announcement about a takeover. Rio Tinto had formalized an offer to buy Riversdale for around A$16 per share, The Australian newspaper reported on its website. The offer, higher than A$15 per share previously on the table, would value Riversdale at $3.75 billion. The price is a 13.5% premium to Riversdale’s close on December 3, the company’s last trading price before news of Rio’s interest was announced. A Riversdale spokesman declined to comment. Rio Tinto was not immediately available to comment. A source familiar with the situation said talks with Rio Tinto continued but declined to comment on the media report. Investors said Rio Tinto may still have to look at a joint venture rather than a full takeover to get a deal past Riversdale’s major shareholders, which include India’s Tata Steel which owns about 24%, Brazilian steelmaker CSN and US Investment firm Passport Capital.
DSM to buy Martek for $1.09 bn
Dutch chemicals group said on Tuesday it would buy Martek Biosciences Corporation for $1.087 billion (829 million euros) in cash to specialize further in the niche food nutrition industry. DSM has been repositioning itself in recent years away from bulk chemicals to focus on niche life sciences and materials sciences and last week completed its divestment programme, saying it had a war chest of 2 billion euros for acquisitions. DSM said its offer price of $31.50 per Martek share represents a 35% premium to the US-based company’s closing share price on December 20 and that Martek’s board of directors is recommending the offer to shareholders. The world’s largest vitamins maker said the deal gives DSM a new growth platform for natural, healthy polyunsaturated fatty acids nutrition ingredients, adding that Martek is a global leader, especially in infant formula nutrition. Martek had annual net sales of $450 million for its fiscal year which ended October 31, 2010 and estimated earnings before interest, tax, depreciation and amortization of $115 million to $120 million.
Posco may bid for Korea Express
Posco, the world’s No.3 steelmaker, said on Tuesday that it plans to review