Rio needs two thirds of voting Turquoise Hill shareholders to back its bid, including its own 51% stake, and a simple majority of the rest of the voting shareholders.
It has raised its offer for Turquoise Hill thrice to C$45, but that has failed to satisfy Pentwater Capital and SailingStone Capital, two of its biggest minority shareholders, which own stakes of 15.2% and 2.2%, respectively.
Turquoise Hill shares last traded at C$41.29.
Rio had reached an agreement with both that they would abstain from a shareholder vote on the proposal on Nov. 15 under conditions that raised concerns from Turquoise Hill, investors and the Canadian regulator that minority shareholders could be treated differently.
“This announcement just takes us back to where we were 4-5 weeks ago,” Barrenjoey analyst Glyn Lawcock said, adding that he expected a new shareholder vote before the year end.
“There isn’t a carve out for (Pentwater and…
