CSN raises stake in Riversdale

Even as Tata Steel has kept its options open on Riversdale Mining, Brazil’s CSN, the other major shareholder in the junior Australian mining company, has increased its stake.

The Latin American steel producer has increased its holding from 16.3 per cent to 17.6 per cent in Riversdale, which is in the middle of a $3.9-billion takeover bid from Rio Tinto. Add Tata Steel’s 24.2 per cent and the two major shareholders together have almost 42 per cent.

Industry representatives had felt CSN was unlikely to commit to Rio’s open offer after it chose to increase its stake. Rio’s offer is open till February 18.

Tata Steel is weighing all options. Though its representative on the board of Riversdale, N K Misra, recommended the Rio offer to shareholders last month, it came with a disclaimer: Misra’s recommendation was given in the capacity of a director of Riversdale and did not reflect the Tata position.