Tata Steel confirms raising stake in Riversdale Mining

TATA Steel confirmed today it has acquired another 2.9 per cent of takeover target Riversdale Mining, lifting its stake to 27.1 per cent.

The move, in combination with Brazilian based CSN's 19.9 per cent holding, virtually blocks Rio Tinto's $3.9 billion bid for the company.

The $16 a share bid is based on controlling more than 50 per cent of Riversdale.

Tata, a global steel-making giant,  wants to secure access to Riversdale's coal for its Corus Steel unit.

The Tata purchases were first reported in The Australian on Monday.