TORONTO (miningweekly.com) – Diversified miner Rio Tinto has raised its offer for Riversdale Mining by about three percent and extended the offer deadline by two weeks.

The company said it will now offer A$16,50 a share for Riversdale, which owns coal assets in Mozambique and South Africa, up from an earlier A$16,00.

Rio has also removed all conditions to the bid other than more than a 50% minimum acceptance.

But the company said there would be no more increases to its offer “in the absence of a competing proposal”.

“There has been no sign of a competing proposal in the 11 weeks since the bid was announced,” Rio Tinto energy chief executive Doug Ritchie said.

Shareholders should accept the Rio offer “or risk seeing their share price return to prebid levels", he said.

“There is no question that Rio Tinto's expertise is crucial to overcoming the development challenges of Riversdale's projects.”

India's Tata Steel said on March 2 it had increased its holding in Riversdale to 27,1%, up from 24,2%. Brazil's CSN is also a shareholder and also increased its stake in Riversdale last month.

The Riversdale board, which includes representation from Tata, recommended in favour of the $16 a share offer in January.

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