Rio Tinto bid for Riverdale possible: Tata

The Australian has reported that key shareholder Tata Steel has an open mind about Rio Tinto Ltd’s （ASX:RIO） $3.9 billion bid for Riversdale Mining Ltd （ASX:RIV）.

According to the Indian steel giant’s vice chairman, B. Muthuraman, the company is open to the takeover as long as its investment goals are met.

The company says it wants coal for its own use and for an economical advantage.

Tata, the world’s seventh-largest steelmaker, has a 24 per cent stake in Riversdale.

For the year ended 30 June 2010, Rio Tinto reported a net profit of $7.4 billion.