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. Last Updated: 07/27/2016

Rio Bids on North

MELBOURNE, Australia -- Mining giant Rio Tinto PLC/Ltd. launched a 3.80 Australian dollars ($2.30) per share or a 2.8 billion Australian dollar ($1.7 billion) takeover offer Friday for Australian mining and forestry group North Ltd. after securing 14.5 percent of its stock before the market opened.

In a statement, Rio Tinto said the bid represented a premium of 30 percent to North's closing share price of 2.93 Australian dollars on Thursday and 35 percent to the weighted average price for North shares over the past three months.

"The acquisition of North provides the opportunity to combine Rio Tinto and North's mining operations and to pursue capital and operating efficiencies wherever they might exist," said Leigh Clifford, Rio's chief executive .

North said in a brief statement that it believed the Rio offer was inadequate.