Three bidders for Rio Tinto's Canada sale reportedly drop out

Three bidders for Rio Tinto's (RIO -1.6%) majority stake in Iron Ore Co. of Canada, including Apollo (APO), Blackstone (BX) and Glencore (GLCNF.PK), have dropped out after second round bids were due last month, Reuters reports.

Teck (TCK) is said to be one of two remaining bidders for the stake.

The low offers, at a time when dozens of mining assets are for sale and demand for steelmaking commodities is uncertain, raise questions over the future of a sale that could still take months to tie up should Rio decide to push ahead.

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Comments (2)
  • john001
    , contributor
    Comments (1217) | Send Message
    Here's hoping TCK drops out as well.
    6 Aug 2013, 04:40 PM Reply Like
  • Jason Burack
    , contributor
    Comments (2155) | Send Message
    This makes sense. Many of the other base metal producers are over-leveraged too and have hurting balance sheets with little cash. Lundin Mining is backed by billionaire Lucas Lundin and he helped finance Lundin Mining so they could buy a base metal property from VALE for $300 million that VALE invested over $600 million into already. Pretty nice long term bargain if you have the deep pockets and cash/ access to credit to wait the cycle out.
    6 Aug 2013, 04:51 PM Reply Like
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