Rio Tinto PLC
28 June 2000
Rio Tinto lodges Bidder's Statement for North
Rio Tinto Limited announced today that it had lodged its Bidder's Statement
for North Limited with the Australian Securities and Investments Commission,
and served copies of the Bidder's Statement on North and Australian Stock
Exchange.
Rio Tinto is making a cash offer of A$3.80 per share for all the issued
shares of North. The offer values North at A$2.80 billion compared with its
value the day before the offer was announced of A$2.16 billion.
The offer represents a premium of approximately:
* 30% to North's closing price on the day before the offer was announced;
* 35% to the weighted average share price of North over the three months
prior to the announcement of the offer.
Rio Tinto purchased a 14.5% holding in North from a range of institutions
just prior to the announcement of the offer at A$3.80 per share. Rio Tinto is
now the largest shareholder in North.
Mr Leigh Clifford, Chief Executive of Rio Tinto, said, 'Through the added
scale and potential synergies that it offers, this acquisition has the
potential to underpin the global competitiveness of Australia's iron-ore
industry for the future,' he said.
'The cash offer is straightforward and is being made at a full and fair
price. We are pleased with the response received so far regarding the offer.'
'The offer represents an opportunity for North shareholders to realise a
significant cash premium to the market price for their shares before the
announcement of this offer,' Mr Clifford said.
Rio Tinto expects to dispatch the Bidder's Statement to North shareholders on
or around 13 July 2000.
Rio Tinto is making the offer through a wholly owned subsidiary, Rio Tinto
Investments Two Pty Limited.
The Bidder's Statement will be on Rio Tinto's website at:
www.riotinto.com.au/home.
For further information, please contact:
Media Relations Investor Relations
Lisa Cullimore Peter Jarvis
+ 44 (0) 20 7753 2305 + 44 (0) 20 7753 2401
Website: www.riotinto.com
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