First Quantum takes C$5.1 billion bid to Inmet shareholders
TORONTO (Reuters) - First Quantum Minerals Ltd (FM.TO: Quote) on Wednesday launched a hostile takeover bid for smaller rival Inmet Mining Corp IMN.TO, as the Canadian base metal miner looks to transform itself into a top global copper producer.
First Quantum mailed its C$72-a-share offer to Inmet's shareholders, starting the clock on the takeover that values the smaller company at some C$5.1 billion ($5.17 billion).
Inmet's shares were trading just above the offer price at C$72.40 on Wednesday at midday on the Toronto Stock Exchange, while First Quantum's stock was down 3.2 percent at C$20.85.
The latest offer, first outlined in mid-December, follows an initial bid of C$62.50 put forward in October. The next month, First Quatum raised its bid to C$70.
If successful, the deal would give First Quantum control of the Cobre Panama copper project in Central America, which is one of the world's largest undeveloped copper deposits.
A combination with Inmet would also create one of the world's largest and fastest-growing copper-focused producers, while easing First Quantum's dependence on Africa and particularly Zambia.
Inmet said it was reviewing the terms of the offer while investigating "all potential strategic alternatives that may enhance shareholder value."
The Toronto-based miner promised to make a formal recommendation to shareholders within 15 days and urged them to take no action until that time.
The First Quantum offer will be open until February 14, 2013, unless extended or withdrawn, and is contingent on a minimum take up of 66-2/3 percent of outstanding shares, along with regulatory approvals. Continued...