January 09, 2013 - 1:57 AM
TORONTO - First Quantum Minerals Ltd. (TSX:FM) is sending its takeover offer for Inmet Mining Corp. (TSX:IMN) directly to the copper miner‘s shareholders.
First Quantum said last month that it had increased its offer $72 per Inmet share, half in cash, half in stock, for a total offer worth about $5.1 billion.
It was the second time First Quantum boosted its cash and stock bid for Inmet, which rejected a $4.9 billion stock and cash offer in November. At the time, Inmet said the ``highly conditional offer'' was not in the best interest of its shareholders.
‘‘We are taking the significant step of making this proposal directly to Inmet shareholders and requesting their support,‘ said First Quantum CEO and chairman Philip Pascall in a statement early Wednesday.
"I believe this combination creates a uniquely attractive, large, liquid and high growth copper focused company. I see the combination of the two companies creating not only a new global leader in copper, but also one of the most exciting, 'must-own' companies in the global mining sector."
First Quantum says the Offer will be open for acceptance until 5 p.m. EDT on Feb. 14 unless extended or withdrawn.
First Quantum said last month that despite the rejection of its earlier bid, it has been approached by a number of Inmet's shareholders expressing interest.
It said combining the two companies would have the potential to produce more than 1.3 million tonnes of copper annually by 2018.
Inmet shares closed down 25 cents Tuesday at $72.25 on the Toronto Stock Exchange while First Quantum shares closed down 17 cents at $21.54.
News from © The Canadian Press, 2013