CA - Turquoise Hill paring some gain after investor criticizes deal with dissidents

Turquoise Hill Resources ( NYSE: TRQ ) pared a bit of its earlier gains, though its still up 3.9%, after a holder criticized Rio Tinto's ( NYSE: RIO ) deal with some dissident holders.

The holder criticized Rio Tinto's agreement with dissidents Pentwater and SailingStone, claiming it appears to be appear unfair because it rewards a select number of holders, according to a Globe & Mail report , which cited Turquoise holder Caravel Capital Investment.

Pentwater Capital, the largest holder of Turquoise Hill after Rio Tinto, and SailingStone Capital, agreed to withhold their votes at the holder meeting next Tuesday, Rio announced on Tuesday.

Under the terms of the agreement with Pentwater and SailingStone, the parties agreed that the dissent proceedings will be conducted by arbitration and the holders will be paid C$34.40 of the consideration following completion of the deal and the remainder following final determination of the arbitration.

Caravel is said to be considering filing a complaint with the Ontario Securities Commission on fairness grounds, according to the Globe & Mail report. Caravel didn't immediately appear to be on a Turquoise hill holders list on Bloomberg, according to traders.

In September, Rio Tinto ( RIO ) offered to acquire the ~49% of Turquoise Hill ( TRQ ) shares that Rio and its affiliates do not already own for C$43/share. Rio Tinto reconfirmed in the Tuesday statement that the proposal of C$43.00 offer was its best and final.

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