Sterlite ups Asarco bid to $1.5 billion; Grupo Mexico outbids with $2 billion
11 August 2009
Vedanta group company Sterlite Industries has revised its bid for the bankrupt Texas US-based miner and smelter Asarco to $1.5 billion from its earlier offer of $1.1 billion, prompting rival bidder Grupo Mexico to hike its offer to $2 billion.
Sterlite's bid hike comes in the wake of an increase in copper prices that have gone up by nearly 50 per cent in the last three months, a company release said.
The revised consideration includes a cash part of $1.59 billion and a $208 million copper price participation note (reduced from earlier $770 million), the release said.
Sterlite will also be the beneficiary of 50 per cent of the proceeds from general unsecured creditors' interest in a judgement against Americas Mining Corporation awarded by US district court of Texas, it noted.
While Asarco's business creditors are reportedly supporting Sterlite's bid, Grupo Mexico, too, is ready to offer more repayment to creditors.
Sterlite was earlier reported as saying that it would avoid a bid war. Sterlite and Asarco's parent Grupo Mexico have been in negotiations over the deal for months. (See: Sterlite likely to slash Asarco bid to $1.5 billion)