Markets
RIO

UPDATE: Ivanhoe Mines Down 20%, Dips Under $17 As Rio Tinto Wins Challenge To Shareholder Rights Plan

An independent arbitrator has upheld Rio Tinto's ( RIO ) claim challenging a shareholder rights plan in effect at Ivanhoe Mines (IVN.TO, IVN), allowing the large diversified miner to purchase additional shares in Ivanhoe.

In a statement, however, Rio said at this time it has no intention of making a full takeover bid for Ivanhoe's shares, later adding that it "reserves the right to change its intention in the future."

Ivanhoe shares plunged on the news, falling 20% and dipping under $17 each.

Rio currently owns 49% of Ivanhoe stock. The arbitrator also dismissed Ivanhoe's counterclaim that Rio Tinto breached a 2006 private placement agreement with Ivanhoe. As part of the 2006 private placement, the companies established a 5-year stand-still agreement - later extended through Jan. 18, 2012 - capping Rio's stake in Ivanhoe. As part of the decision, the arbitrator dismissed Ivanhoe's counterclaim and ruled that Rio Tinto did not breach the Private Placement Agreement with Ivanhoe.

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

Copyright (C) 2016 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.


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

In This Story

RIO

Other Topics

Commodities

Latest Markets Videos

    MTNewswires

    Founded in 1999, MT Newswires (formerly known as Midnight Trader) is a leading provider of original source, multi-asset class, real-time, global financial news and information to most of the largest banks, brokerage firms and professional market data, trading & research applications in North America.

    Learn More