Rio Tinto PLC, the second biggest global mining company, raised the stakes in a bidding war for Australia's North Ltd., as it upped its offer for the mining and forestry firm by 25%.
Rio Tinto increased its bid for North to US$2.77 per share, valuing the company at US$2.04 billion. That's about 12 % higher than a bid by Anglo American PLC and tops Rio's original June offer by about 25%.
"This offer represents an attractive price for North's shareholders and is value-enhancing for Rio Tinto shareholders," Rio Tinto's chairman Robert Wilson said in a statement.
Wilson said at a media briefing that many of the anticipated efficiencies would be erased by the higher bid.
"Over half of the synergies that we saw (would be lost)," he said.
