If Rio Tinto holds 49% of IVN,s shares, the poison pill would be useless. Rio Tinto would be entitled to the 49% of extra shares that would be issued under the rights plan as well as the other shares. The poison pill would be useless in this type of scenario where Rio Tinto already owns 49% of the shares/company.

This would be one of the scenario,s I mentioned in a post awhile back, where the Rights Plan becomes ineffective. If a mining company allows a farm in by another miner, so they can get considerable cash funding and help bring whatever resource it is to fruition, they risk losing control of the company down the road.Of course there are pro,s and con,s to a farm in,but once this step is taken, it changes things. Also once a miner has their foot in the door on a company, they can increase their amount of shares they own on the open market.

This is my understanding of how it works, anyone correct me if I am wrong.