UPDATE 1-Inmet Mining denies takeover talks, shares slide

Tue Nov 13, 2012 4:16pm EST
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* Inmet says not in talks to sell company, major assets

* Denial follows speculative report in British newspaper

* Daily Mail suggests Inmet held talks with First Quantum

* Shares close down 5.32 percent at C$54.44 on TSX (Adds analyst comment)

Nov 13 (Reuters) - Canada's Inmet Mining Corp said on Tuesday that it is not in talks with any party about a sale of the company or a substantial part of its assets, contradicting a British media report, and its shares fell 5 percent.

The statement from the base metal miner followed a report late on Monday on the website of the Daily Mail newspaper that suggested the company had held informal tie-up talks with larger rival First Quantum Minerals Ltd.

The newspaper article, which was unsourced, speculated that a takeover bid could be worth as much as C$5 billion (US$5 billion). Inmet's market capitalization, as of the close of the market on Monday, was nearly C$4 billion.

Shares of Inmet closed down 5.32 percent at C$54.44 on Tuesday on the Toronto Stock Exchange after the company denied the takeover rumors.

The Toronto-based miner said it remained focused on the construction and development of its $6.2 billion Cobre Panama project in Central America.   Continued...