NEW YORK Two
Canadian pension funds are inviting investment firms to join
them to bid for Rio Tinto Plcs Canadian iron ore assets,
according to media reports.
Canada Pension Plan
Investment Board (CPPIB) and Caisse de Dépôt et
Placement du Québec are both seeking partners to table
separate bids for Rio Tintos 59.7-percent stake in Iron
Ore Co. of Canada (IOC).
CPPIB is working with
U.S. private equity firm Apollo Global Management LLC and is
looking for other partners, while Caisse de Dépôt
has held discussions with possible partners on bidding for IOC,
according to the report.
Both companies told
AMM sister publication Steel First July 8
that "they do not comment on rumor or speculation in the
bidders named include private equity company Blackstone Group
LP, Glencore Xstrata Plc and Teck Resources Ltd.
Rio Tinto plans to
focus on its key assets and to sell noncore operations, which
include its Canadian iron ore assets, after suffering more than
$14 billion in write-downs in its aluminum and coking coal
businesses last year (amm.com, Feb. 14).
Rio Tinto owns 58.7
percent of IOC, Mitsubishi Corp. holds 26.2 percent and
Labrador Iron Ore Royalty Income Fund controls 15.1
Indian mining company
Vedanta Resources Plc has withdrawn its bid for Rio
Tintos Canadian iron ore assets, according to
policy not comment on speculation," a spokesman for Rio Tinto
version of this article was first published in AMM sister
publication Steel First.