SYDNEY (XFN-ASIA) - BHP Billiton and Rio Tinto are rumored to be among the bidders for a controlling 51 pct stake in India's largest non-state iron ore exporter, Sesa Goa, The Sydney Morning Herald reported, citing Indian media reports.
It said Mitsui & Co is believed to be considering offers for the 51 pct stake, worth about 780 mln usd, it holds in Sesa Goa as the Japanese trading group does not consider it a core asset.
Interested parties are said to include the world's three largest iron ore miners - BHP, Rio and Brazil's CVRD - along with large steelmakers such as Arcelor Mittal, Sterlite Industries and Tata Iron & Steel.
Sesa Goa produces about 10 mln metric tons of relatively high grade iron ore a year under long-term contracts and has reserves of about 150 mln. It also produces pig iron and coke using metallurgical coal imported from Australia and China.
Under Indian law, the winning bidder will be required to make an open offer to minority shareholders to acquire at least another 20 pct of the company.
bruce.hextall@xfn.com