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Rio raises bid for North
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August 3, 2000: 5:40 a.m. ET
Rio Tinto makes counter-offer for mining rival; Anglo evaluating options
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LONDON (CNNfn) - Rio Tinto PLC, the world's second-biggest mining company, raised its offer for Australia's North Ltd, on Thursday, intensifying the takeover battle for the iron ore and forestry firm.
Rio Tinto increased its bid for North to 4.75 per share Australian dollars ($2.77 per share), valuing the company at 3.5 billion Australian dollars ($2.04 billion). That's about 12 percent higher than a friendly bid by Anglo American Plc and tops Rio's original offer in June by about 25 percent.
"This offer represents an attractive price for North's shareholders and is value-
enhancing for Rio Tinto shareholders," Rio Tinto Chairman Sir Robert
Wilson said in a statement.
However, Wilson said at a media briefing that many of the anticipated synergies would be erased by the higher bid. "Over half of the synergies that we saw," he said, when asked how much of the synergies would be lost by the company being forced to make a higher bid.
Rio Tinto said the unconditional offer is expected to be endorsed by North's board of directors. The offer is scheduled to close Aug. 14.
Bidding rival Anglo said it was evaluating its options.
"We've noted Rio's counter-bid and we will respond in due course," Anglo spokesman Nick von Schirnding told Reuters.
A successful takeover by Rio Tinto would move it a step up the rank in size, making it the world's second largest iron ore producer behind Brazil's CVRD.
If Anglo American won the deal it would enter the iron ore industry in fourth place.
Shares of Melbourne-based North closed up 14 cents at 4.61 Australian dollars earlier Thursday amid rumors of an increased bid. Rio Tinto's shares fell 26 cents to 25.54 Australian dollars.
In London, Anglo American shares were little changed at 3,179 pence. 
-- from staff and wire reports
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Rio Tinto
North Ltd.
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