An Indian state consortium has decided not to counter Rio Tinto Ltd’s
(ASX:RIO) bid for Riversdale Mining Ltd
(ASX:RIV).
The consortium had hired Citigroup to do due diligence on the firm, but has since decided against making an offer.
Rio Tinto's $3.9 billion offer to buy Riversdale gathered momentum this week when Riversdale's board unanimously recommended the bid.
Riversdale is an attractive asset for companies seeking to secure coal supplies as it has coking coal reserves in Mozambique.
For the year ended 30 June 2010, Riversdale reported a net profit of $1.3 million.
