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UPDATE: Concerned Shareholders of Forbes & Manhattan Coal Question Process to Buy Riversdale Mining From Rio Tinto; Shrs up 4%

So-called "concerned shareholders" Resource Capital Fund V L.P., Terrafirma Securities Holdings LL.C. and Skye Alba Pty Ltd expressed concern regarding the announcement from Forbes Coal & Manhattan (FMC.TO) that it plans to enter into a definitive agreement to acquire 100% ownership of the shares and shareholder claims of Riversdale Mining Limited in Riversdale Holdings (Proprietary) Limited from Rio Tinto.

"We consider it inappropriate that the company has been committed to a transaction by a Board that does not have the majority support of its shareholders," said Mason Hillis, Partner, RCF, on behalf of the Concerned Shareholders. "We feel that the timing of this decision validates our concerns that the Board is not independently and transparently operating to the benefit of the company's shareholders."

The transaction comes as the Concerned Shareholders recently sought and secured overwhelming shareholder support to strengthen the corporate governance standards at Forbes Coal for the benefit of shareholders, through the appointment of a slate of directors that reduces the influence of any one shareholder.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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