CORRECTED-UPDATE 2-Coeur bids for Orko in battle for Mexico silver deposit

Wed Feb 13, 2013 11:29am EST
 
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(Corrects paragraph 6 to say Stuart McDougall is an analyst with Casimir Capital, not Cormark Securities)

* Coeur offers C$2.70/share for Orko, topping First Majestic offer

* Orko says Coeur's partly cash offer is superior

* First Majestic has till Feb. 19 to match, better offer

By Bhaswati Mukhopadhyay and Swetha Gopinath

Feb 13 (Reuters) - Coeur d'Alene Mines Corp offered to buy Orko Silver Corp, topping a bid from First Majestic Silver Corp and opening a race for control of one of the world's largest undeveloped silver deposits.

The prize is Orko's La Preciosa project in Mexico, which Coeur estimates holds 99 million ounces of indicated silver resources.

Coeur's cash-and-shares offer values Orko at C$384 million ($383 million), or C$2.70 a share, about 25 percent more than First Majestic's stock-based offer, based on Tuesday's closing share prices.

Orko shares jumped 17 percent to C$2.51, still well below Coeur's offer. Shares of Coeur fell 7.7 percent while those of First Majestic rose 3 percent.   Continued...