Inmet turns down First Quantum bid, adopts rights plan

Wed Nov 28, 2012 3:51pm EST
 
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TORONTO Nov 28 (Reuters) - Inmet Mining Corp said on Wednesday it had turned down an unsolicited takeover bid from its larger rival First Quantum Minerals Ltd, 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)