Ivanhoe Backs Holders’ Rights Plan Amid Rio Dispute
July 12 (Bloomberg) -- Ivanhoe Mines Ltd., building a $4.6 billion copper and gold mine in Mongolia, affirmed its support for a shareholders’ rights plan after largest holder Rio Tinto Group said the proposal violated an earlier accord.
Ivanhoe “firmly believes that the shareholders’ rights plan, adopted in April this year, is not in breach of any of Rio Tinto’s existing contractual rights,” David Huberman, independent director at the Vancouver-based company, said today in a statement.
Rio, owner of 29.6 percent of Ivanhoe and the world’s third-largest mining company, said July 9 that the plan contravened its rights under a 2006 private-placement accord and would be referred to arbitration.
Ivanhoe, Rio lock horns over shareholder rights plan
TORONTO, July 12 (Reuters) - Canadian miner Ivanhoe Mines (IVN.TO) said on Monday it will defend its shareholder rights plan in arbitration proceedings that have been initiated by its largest shareholder and partner Rio Tinto (RIO.AX) (RIO.L).
Shares of Ivanhoe rose after it announced its intention to defend the plan, which was approved by Ivanhoe shareholders.
Rio Tinto, which currently owns a 29.6 percent of Ivanhoe, has the right under an earlier agreement to raise its stake in the company to 46.6 percent. Rio Tinto contends that Ivanhoe's plan breaches some of its rights under an October 2006 private placement agreement between the two companies.
Ivanhoe countered that nothing in the private placement agreement prohibits it from implementing a rights plan.
The plan was approved on April 5 by all members of the Ivanhoe board except the sole Rio Tinto appointee. It was then ratified on May 7 by 95 percent of Ivanhoe's minority shareholders.
The tussle is of particular interest given the interest shown by Rio's largest shareholder, China's Chinalco, in acquiring a minority equity stake in Ivanhoe, or a direct minority interest in the Oyu Tolgoi project.
Ivanhoe Mines Reaffirms Support for Company's Plan That Protects Shareholders' Rights
VANCOUVER, CANADA--(Marketwire - July 12, 2010) - Ivanhoe Mines Ltd. (TSX:IVN)(NYSE:IVN)(NASDAQ:IVN) David Huberman, lead independent Director of the Ivanhoe Mines Board of Directors and Chair of the Board's Corporate Governance Committee, said today that the company would continue to support its Shareholders' Rights Plan in an arbitration proceeding initiated by Rio Tinto plc.
"Mogi" Munkhdul Badral
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