LONDON (ShareCast) - (Sharecast News) - Mining giant Rio Tinto said it had ended its talks with dissenting minority shareholders of takeover target Turquoise Hill Resources.
The company on Friday said it would now go ahead with its purchase of the remaining 49% in the Canadian miner it does not own for $3.3bn. This would give it control of the Oyu Tolgoi copper mine in Mongolia, in which Turquoise Hill holds 66%.

Rio agreed with Turquoise Hill's board on a $43 Canadian dollar per share offer in September but faced opposition from some investors.

Rio struck a deal with two major investors, Pentwater Capital Management and SailingStone Capital Partners, who agreed to abstain from the vote and enter into arbitration, which was ultimately "unsuccessful".

"Rio Tinto has now agreed to terminate the agreements with the named security holders," the company said in a statement.

"We will work to secure a new shareholder meeting date so that the proposed transaction can be voted on by minority shareholders as soon as practicable," said Bold Baatar, Rio Tinto's copper chief executive.

"We continue to believe that a premium of 67% for their shares and removal of financial uncertainty is an attractive proposition for minority shareholders."

"The dissent process is a time consuming and lengthy process that introduces uncertainty in relation to the consideration to be received and the potential for substantial legal costs to the dissenting shareholder. Rio Tinto intends to vigorously defend all proceedings and claims."

Reporting by Frank Prenesti for Sharecast.com

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