Rio Tinto bid under threat from India

Skynews Jan 24--Rio Tinto's $3.9 billion bid for Riversdale Mining is under threat from a group of state-owned Indian companies.

According to reports, International Coal Ventures has appointed Citi to advise on the transaction, but is still yet to decide whether to go ahead with a higher bid.

Chairman CS Verma says another board meeting will be held on Thursday to clarify some valuation points.

The group first flagged a possible bid in December, after Riversdale revealed it was in talks with Rio. However, there are still doubts about the group's intentions due to constant rumours in the market.

Riversdale's board is recommending the Rio bid in the absence of a better offer.