TORONTO – INCO LTD.’s bid for control of fellow nickel miner FALCONBRIDGE LTD. failed to meet the minimum tender condition of 50.01%. The news was announced early in the day on Friday on July 28. The support agreement between Inco and Falconbridge has been terminated and a payment of US$150 million is now payable to Inco. In the event that XSTRATA’s offer for Falconbridge is successful, a further US$300 million will be payable to Inco.
Xstrata’s all-cash offer, worth Cdn$62.50 per Falconbridge share, remains open until Aug. 14.
“Inco’s attention now turns to completing our two-way transaction with PHELPS DODGE to create a global powerhouse in nickel and copper,” said chairman and CEO Scott Hand.
The Phelps Dodge offer consists of Cdn$20.25 in cash plus 0.672 of a Phelps Dodge share for each Inco share, or approximately Cdn$79.83/share.
TECK COMINCO’s offer for control of Inco is also on the board until Aug. 16. The deal was been beefed up on Monday July 31 to Cdn$40.00 in cash and 0.58221 of a Teck Cominco Class B voting share per Inco share. That is equal to Cdn$82.50 per Inco share.
For background, check out Canadian Mining Journal’s June special issue, prepared in conjunction with Teck Cominco’s 100th anniversary this year. An electronic version of the issue is currently available at www.canadianminingjournal.com.