CSN, Brazil’s largest diversified steelmaking group, has raised its stake in Australian miner Riversdale, which is subject to a $3.9bn takeover bid from global miner Rio Tinto.
CSN increased its stake to 17.58 per cent from 16.29 per cent, according to a substantial shareholder notice filed with the Australian exchange.
The Brazilian group trails Riversdale’s biggest shareholder Tata Steel, which owns 24.2 per cent.
Investors and sources close to the deal said CSN was likely trying to catch up with Tata and strengthen its bargaining power as it negotiates with Rio Tinto over coking coal supplies.
Neither CSN nor Tata were expected to lodge rival bids but have been talking to Rio Tinto since it made the offer, They are yet to commit publicly to the offer which closes on 18 February.