TRQ:CC - Turquoise Hill forms special committee to weigh Rio Tinto offer

Turquoise Hill Resources (NYSE:TRQ) said after Thursday's market close that it formed a special committee of independent directors to consider Rio Tinto's (NYSE:RIO) proposal to buy out the remaining 49% of the company it does not already own. The committee also will consider whether the company should proceed with an equity offering to meet liquidity requirements or consider other financing options, including potential financing from Rio Tinto. The move makes strategic sense for Rio Tinto, as it tidies ownership and gives it a stronger position in the copper sector, AJ Bell analysts have said. Rio owns 51% of Turquoise Hill, which in turn owns 66% of the huge Oyu Tolgoi copper and gold project in Mongolia, with the remaining 34% held by a state-owned entity. Last month, Rio Tinto offered to acquire all remaining Turquoise Hill shares for C$34 each.

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Turquoise Hill forms special committee to weigh Rio Tinto offer