TRQ - Turquoise Hill rejects Rio Tinto's bid to take control of huge Mongolia mine

Turquoise Hill Resources ( NYSE: TRQ ) -23.2% pre-market on Monday after its special committee said a takeover proposal from majority shareholder Rio Tinto ( NYSE: RIO ) is not in the company's best interest .

Rio Tinto ( RIO ) made an all-cash offer in March to buy the shares it does not already own in Turquoise Hill ( TRQ ) for C$34/share (US$26.57), a 32% premium to the last closing price before the offer was announced, valuing Turquoise Hill's minority share capital at ~US$2.7B.

Turquoise Hill ( TRQ ) is 51%-owned by Rio ( RIO ) and holds a 66% interest in the Oyu Tolgoi copper-gold project in Mongolia.

Rio ( RIO ) said it is "disappointed" by the decision but still believes the deal would deliver compelling value for Turquoise Hill ( TRQ ) minority shareholders.

Turquoise Hill ( TRQ ) recently raised the cost estimate to develop the underground mine at the Oyu Tolgoi copper operation by ~$300M .

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