RE:Bloomberg: RIO dug a hole and its not a mine
Rio Tinto could double its bid for the minority TRQ shares and it would not affect its financial position much so trying to compare this to the 38 billion Alcan Fiasco over 10 years ago when Rio Tinto was a considerably smaller company really does not cut it.
As far as reputatuion being in tatters, it has nothing to do with them raising the bid or not. Their reputation is already it tatters, not only because of this deal but because of all the other ressent events that Rio Tinto has been involved it. i would say that their reputation would be more in tatters if they backed out of the deal than if they re worked it to offer fair price.
The securities commissions, Pentwater and Sailing Stone actually give them an out! We did not intend on paying more but the regulators and big funds forced our hand and the arbitrators decided on the final price!
If they do not follow through on this deal, then their reputation will be even more in tatters. Worlds second biggest miner tries to snooker minority TRQ holders with illegal take over bid and fails! Will sum it up.