The Montreal Gazette: Rio Tinto closes in on Ivanhoe

After five years of tense partnership, Rio Tinto Ltd. is finally free to take control of Ivanhoe Mines Ltd.. On Wednesday, Ivanhoe’s board surprised investors – Rio Tinto included – by recommending that its shareholder rights plan (or “poison pill”), the only remaining barrier preventing Rio Tinto from boosting its Ivanhoe stake from 49 per cent to above 50 per cent, be scrapped. Last month, Ivanhoe lost an arbitration dispute with Rio, effectively blocking Ivanhoe from diluting Rio’s 49 per cent interest. Rio also said that it may buy more Ivanhoe shares, even if it triggers the rights plan, creating huge dilution for shareholders. Those factors reduced Ivanhoe chief executive Robert Friedland’s flexibility to strike a deal with anyone else. To read the full article, click hereRio Tinto closes in on Ivanhoe

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