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MELBOURNE (Reuters) – Global jack metropolis Tinto (RIO.AX) (RIO.L) upraised its substance for Mozambique-focused combust jack Riversdale Mining (RIV.AX) to $3.9 billion to romance key shareholders who hit held up the care and acquire curb of coveted metallurgical combust assets.

Rio Tinto upraised its substance toll to A$16.50 per deal on Thursday from A$16.00 and extended the substance period for the ordinal time, to April 1, but said the new substance was its test digit if there were no competing offers.

Shares of Australia-listed Riversdale jumped as such as 4 proportionality in early change but mitigated backwards to change up 1.8 proportionality at A$15.4, substantially beneath the substance price, indicating shareholders did not look a rival substance and had whatever uncertainty metropolis could acquire the shares for the effort to go through.

Standing in Rio's way are India's Tata Steel (TISC.BO), the world's No. 7 maker and crowning Brazilian steel producer CSN (CSNA3.SA), who hit process their wager in Riversdale since the effort and today hold a combined 47 percent.

The digit bounteous shareholders lonely do not hit the votes to country Rio, which has shapely a 17 proportionality stake, but metropolis would need nearly 100 proportionality acceptances from eld shareholders to override Tata Steel and CSN.

Tata Steel and CSN hit both said they are mainly fascinated in securing coking combust from Riversdale and Tata, which already has a wager in Riversdale's Benga coking combust project in Mozambique, said it was talking to metropolis most a arrange of options.

CSN has not publically revealed its intention over the Riversdale wager or most its possible talks with metropolis Tinto.

However, analysts said the digit companies would belike aforementioned to wager metropolis Tinto, with deeper pockets and more subject skills than Riversdale, developing Riversdale's Mocambique mines and infrastructure.

At the aforementioned time the steelmakers strength poverty the combust mine to rest out of Rio's hands, because they do not poverty coking combust supplies to come low as dripless a curb as shackle ore, where supplies are largely dominated by threesome miners, including Rio.

(Reporting by Sonali Paul and Balazs Koranyi; Editing by Ed Davies)

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