First Quantum Minerals confident of acquiring Inmet Mining
07 March 2013
Canadian miner First Quantum Minerals yesterday said that its sweetened C$5.1 billion unsolicited bid for rival Inmet Mining Corp would succeed.
In October 2012 Vancouver-based First Quantum had made a cash-and-stock bid of C$62.50 per share, before sweetening the bid in November to C$70 a share.
Both the unsolicited offers were rejected by the board of Inmet, which also adopted a shareholders right plan or ''poison pill'' in order to make any takeover very expensive.
New York-based Leucadia National Corp, which owns a 16-per cent stake in Inmet has supported the latest offer. Lat week Quantum extended its offer to 11 March.
Singapore's sovereign wealth fund Temasek Holdings with 11-per cent stake in Inmet, has remained silent, an indication that it may not go with First Quantum's proposal, which analysts think could be raised further.
Inmet, based in Toronto, is developing the second-largest undeveloped copper deposit called Cobre Panama copper mine, and once developed after investing $6.2 billion, would produce around 266,000 tons a year.