DealBook: Rio Tinto and Mitsubishi Raise Bid for Coal & Allied

Rio Tinto and the Mitsubishi Corporation upped their offer to acquire all of Coal Allied to roughly $131 a share, from $128, in a deal that values Coal Allied, an Australian mining company, at around $11.6 billion.

The improved price, which comes a few weeks after the first proposal, represents a 39 percent premium to Coal Allied’s closing price before the suitors initially approached the company about an acquisition. The directors of Coal Allied have recommended the deal.

Rio Tinto and Mitsubishi own 75.7 percent and 10.2 percent of Coal Allied, respectively. After the deal closes, they would own 80 percent and 20 percent, respectively.

The Coal Allied deal is the latest in a flurry of activity around Australian miners.

Earlier this week, Glencore, the commodities giant, moved to acquire the remaining shares of Minara Resources, a nickel producer. Peabody Energy and ArcelorMittal made a hostile bid for Macarthur Coal.

Article source: http://dealbook.nytimes.com/2011/08/26/rio-tinto-and-mitsubishi-raise-bid-for-coal-allied/?partner=rss&emc=rss