Inmet drops poison pill as Quantum takeover deadline looms

Tue Feb 19, 2013 11:23am EST
 
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* Inmet says shareholder rights plan no longer needed

* First Quantum's hostile $72/shr bid to expire on Feb 27

* Inmet may execute strategic alternatives before deadline

* Inmet shares drop 99 Canadian cents to C$69.48

TORONTO, Feb 19 (Reuters) - Inmet Mining Corp said on Tuesday it would waive its so-called poison pill takeover defense against a hostile offer by First Quantum Minerals Ltd and hinted it may execute strategic alternatives to the C$5.1 billion ($5.05 billion) bid.

Earlier this month, mining and metals firm First Quantum extended its C$72-a-share bid to Feb. 27, 2013 for rival Inmet. The offer, announced in mid-December, tops its earlier bids of C$62.50 and C$70 a share.

Toronto-based Inmet has rejected the move by its Vancouver-based competitor to combine forces to create one of the world's largest and fastest-growing copper producers.

Inmet, whose shares dropped 99 Canadian cents to C$69.48 on Tuesday morning, said the new deadline has given it enough time to fully review the offer and potentially execute strategic alternatives.

Inmet previously said it was in talks with a number of interested parties as an alternative to the First Quantum bid. The company did not name the third parties.   Continued...