The Rio Tinto Limited (ASX: RIO) share price is edging lower on Friday morning.
At the time of writing, the mining giant's shares are down almost 1% to $105.40.
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Why is the Rio Tinto share price falling?
The Rio Tinto share price is under pressure following the release of an update on the company's pursuit of Turquoise Hill Resources.
Rio Tinto is seeking to acquire the miner to increase its stake in the massive Oyu Tolgoi copper and gold project in Mongolia to 66%.
According to today's release, the company has carefully considered the concerns raised by minority shareholders of Turquoise Hill Resources in relation to the dissent and dispute resolution provisions in the agreements it entered into with Pentwater Capital Management and SailingStone Capital Partners.
After taking things into consideration, Rio Tinto has agreed to terminate the agreements with Pentwater Capital Management and SailingStone Capital Partners.
Nevertheless, Rio Tinto will be pushing ahead with its proposed transaction to acquire the ~49% of Turquoise Hill shares that it does not own for C$43.00 per share in cash.
Though, it warned that there is no assurance that Pentwater Capital Management and SailingStone Capital Partners will continue to withhold their vote or whether any of them will vote for or against the arrangement.
The release also notes that all minority shareholders of Turquoise Hill will now have access to the same dissent rights and statutory process through the Yukon Courts for Rio Tinto's proposed transaction.
Rio Tinto's Copper chief executive, Bold Baatar, commented:
We have acknowledged feedback received from minority shareholders and returned to the proposal originally unanimously recommended by the Turquoise Hill Special Committee. We will work with the Turquoise Hill Special Committee to secure a new shareholder meeting date so that the Proposed Transaction can be voted on by minority shareholders as soon as practicable. We continue to believe that a premium of 67% for their shares and removal of financial uncertainty is an attractive proposition for minority shareholders.
