Bloomberg: Ivanhoe Mines to Scrap Rights Plan as Rio Seeks Larger Stake

Ivanhoe Mines Ltd. decided to scrap a so-called shareholder rights plan, clearing the way for Rio Tinto Group to increase its stake and gain control of the developer of the Oyu Tolgoi copper mine in Mongolia. Ivanhoe will recommend investors vote to end the rights plan at the company’s next annual meeting on May 11 and delay activating the plan until then, Vancouver-based Ivanhoe said yesterday in a statement. Rio, the world’s third-biggest mining company, has been restricted to holding a 49 percent stake in Ivanhoe by a standstill agreement, which was set to expire yesterday, Ivanhoe said. The London-based company has advised Ivanhoe it intends to acquire additional shares to raise its stake to more than 50 percent, regardless of the rights plan, Ivanhoe said. To read the full article, click hereIvanhoe Mines to Scrap Rights Plan as Rio Seeks Larger Stake

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