More M&A In Met Mining?

Global growth is back; and so, too, is demand for commodities. With that in mind, many major resource companies are looking to position themselves for the next wave with a variety of project investments and corporate M&A activity. Following relatively closely on the heels of the deal between Walter Energy (NYSE:WLT) and Western Coal, Rio Tinto (NYSE:RIO) is trying to buy more metallurgical coal assets of its own by making a bid for Australia's Riversdale Mining. 

The Deal, As It Might Be
At this point, there is no "done deal" between the two companies, but Riversdale has acknowledged that Rio Tinto has made a bid for the company worth about $3.5 billion. While the Rio Tinto bid was reportedly at A$15 per share (a modest premium for a stock that has risen more than 50% since September), Riversdale shares were recently trading for more than A$16 - suggesting that investors expect (if not demand) a better bid or competing offers. (For more, see The Wacky Worlds Of Mergers And Acquisitions.)

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