Inmet turns down First Quantum bid, adopts rights plan

Wed Nov 28, 2012 3:47pm EST
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TORONTO (Reuters) - Inmet Mining Corp IMN.TO said on Wednesday it had turned down an unsolicited takeover bid from its larger rival First Quantum Minerals Ltd (FM.TO: Quote), sending Inmet's shares up more than 19 percent.

The Canadian base metal miner also said it had adopted a shareholder rights plan, which will allow it time to consider and evaluate any bids and potentially seek alternatives to a takeover.

Under First Quantum's proposed cash and share offer, it would have paid up to C$2.461 billion in cash and issued a maximum of 112.679 million shares, in a deal that valued Inmet's shares at C$70, Inmet said.

Trading in Inmet stock was halted at C$52.70 ahead of the news on Wednesday afternoon on the Toronto Stock Exchange. Shares soared 19.2 percent to C$63.00 shortly after trading resumed, while First Quantum's stock fell 4.68 percent to C$20.15.

(Reporting by Julie Gordon; Editing by Leslie Adler)