Inmet refuses $4.9 billion buy-out offer
TORONTO - Reuters
Employees stand in front of an Inmet copper mine in the Turkey’s Artvin. DHA photoInmet Mining, which also hpas investments in Turkey, said on Nov. 28 that it had turned down a C$4.86 billion ($4.89 billion) unsolicited takeover bid from its larger rival First Quantum Minerals, 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.
“After reviewing the proposal with its financial and legal advisors, Inmet’s board of directors has today notified First Quantum that it has declined to pursue the proposal as it is not in the best interests of Inmet shareholders,” the company said in a statement.
First Quantum was not immediately available to comment.
In addition to its 80 percent stake in Cobre Panama, Inmet owns operating mines in Turkey, Spain and Finland. First Quantum operates mines in Zambia, Mauritania and Australia.