Bloomberg reported that First Quantum Minerals Ltd a producer of copper in Africa, raised its bid for Inmet Mining Corp for a second time to about CAD 5.1 billion (USD 5.2 billion) as it seeks control of the Cobre Panama project.
Vancouver based First Quantum said in a statement that it's offering CAD 72 in stock and cash for each Inmet share. That's 36% more than Inmet's closing price on November 27, the day before the Toronto based company said it had rejected two earlier, unsolicited offers from First Quantum. The bid is also 2.9% more than the prior offer of CAD 70 a share.
Mr Philip Pascall chairman and CEO of First Quantum Minerals said that "Our clear preference remains to engage with Inmet."
Mr John Goldsmith, deputy head of equities at Montrusco Bolton Investments Inc in Toronto, which manages CAD 5.2 billion including First Quantum shares, said that "I don't see how two dollars gets them over the hurdle." He added that "The thinking originally was that this could go as high as CAD 75 to CAD 80. Is this going to be a series of little increases?"
First Quantum said the deal would create a company capable of becoming one of the world's top-five copper producers within five years. Copper prices have more than quadrupled in the past 10 years as demand at times outpaced supply.
