UPDATE 2-Inmet turns down First Quantum bid, adopts rights plan

Wed Nov 28, 2012 6:37pm EST
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* Inmet says offer values company at C$70 a share

* Inmet says First Quantum bid not in shareholders' best interests

* Inmet shares close up 17.65 percent at C$62 on TSX

* First Quantum shares close down 1.6 percent at C$20.80 (Adds quotes, deal background)

By Julie Gordon

TORONTO, Nov 28 (Reuters) - Inmet Mining Corp said on Wednesday that it had turned down a C$4.86 billion (US$4.89 billion) unsolicited takeover bid from its larger rival First Quantum Minerals Ltd, sending Inmet shares up more than 17 percent.

The Canadian base metal miner, which is building the massive Cobre Panama copper mine in Central America, also said it had adopted a shareholder rights plan, giving it more time to evaluate bids and potentially seek alternatives to a takeover.

"Inmet doesn't need a dance partner," said Barry Schwartz, vice president and portfolio manager at Baskin Financial Services in Toronto. "Inmet is happy to go it alone and build what may be the premier copper mine to come on-stream in the latter half of this decade."

Under First Quantum's proposed cash and share offer, the company 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 at C$70 a share, or C$4.86 billion, Inmet said.   Continued...