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The largest minority shareholder in Turquoise Hill Resources Ltd. TRQ-T says an offer by Rio Tinto International Holdings Ltd. RIO-N to take the miner private is too low.

Rio Tinto, which already owns a 51 per cent stake in the company, has offered $34 per share for the roughly 99 million shares held by Turquoise Hill’s minority shareholders.

However, in a letter to Turquoise Hill’s independent directors, Pentwater Capital Management LP says Rio Tinto is trying to buy the take at a fraction of the value of what the shares are worth.

Pentwater, which holds a nearly 10 per cent stake in Turquoise Hill, says if Rio Tinto believes its bid is a compelling offer, it would be pleased to buy part of its stake in the company for that price.

The opposition to the deal follows a letter from fellow shareholder SailingStone Capital Partners, which was also critical of the Rio Tinto offer.

Turquoise Hill owns a 66 per cent stake in the Oyu Tolgoi copper and gold mine in Mongolia. Erdenes Oyu Tolgoi LLC, a Mongolian state-owned entity, holds the remaining 34 per cent interest.

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