• Most Popular
  • Most Shared

UPDATE 1-Rio files for IPO of North American coal assets

Fri Aug 8, 2008 7:26am EDT

Stocks

   

(Recasts to add details from paragraph 1)

Stocks  |  Mergers & Acquisitions  |  IPOs  |  Global Markets

LONDON, Aug 8 (Reuters) - Miner Rio Tinto PLC (RIO.L) (RIO.AX) said on Friday it had filed for a public offering of its North American coal unit, though it was also considering other ways of selling the assets.

Rio filed for an IPO of Cloud Peak Energy, which is made up of most of the North American coal assets of its Energy America unit, but said it would make a decision on whether to pursue a listing or another form of divestment once both options had been fully explored.

"Last November, we said that we would explore the possible sale of some or all of the U.S. coal assets of Rio Tinto Energy America," said Rio Chief Financial Officer Guy Elliott.

"We are in active discussions with a number of prospective buyers who have expressed strong interest in those coal assets," he added.

Second round bids for Energy America may be called in around the end of August, a source familiar with the matter said.

A variety of domestic and international trade bidders are interested in the unit, as well as some of the larger private equity firms, the source said.

A Rio spokesman declined to comment on the deadline for bids.

Rio itself is the target of a hostile takeover by larger rival BHP Billiton (BLT.L) (BHP.AX), a deal currently being examined by European Union regulators. (Reporting by Eleanor Wason and Mark Potter, editing by Will Waterman)



More from Reuters

Photo

U.S. probing if al Qaeda linked to airplane incident

WASHINGTON (Reuters) - The United States is investigating whether al Qaeda was involved in a Christmas Day attempt to blow up a passenger jet, but there is no early evidence the Nigerian suspect in the case was part of a larger plot, the U.S. homeland security chief said on Sunday. | Video

A Delta Airbus 330 airliner sits on a runway at Detroit Metropolitan Airport in Romulus, Michigan in this video grab made December 25, 2009. Credit: REUTERS/WDIV TV/Handout

The battle in mid-air

The attraction of bombing airliners means the aviation industry has to be constantly vigilant in its fight against attackers.  Full Article 

A caution sign is seen next to a stock board at the Australian Securities Exchange (ASX) in Sydney September 5, 2008. REUTERS/Daniel Munoz
Political Risk in 2010:

Don't say we didn't warn you

With the financial crisis (mostly) in the past, U.S. investors are eying a fresh start to the coming year. Here's a look at what speedbumps lie ahead.  Full Article