TORONTO The board of INCO LTD. has considered the amended offer from Vancouver-based TECK COMINCO and rejected it as “not a superior proposal” compared to the offer from PHELPS DODGE of Phoenix, Ariz. The Inco board advised its shareholders to vote for the Phelps Dodge proposal.
In the same press release that it said “no” to Teck Cominco, Inco said that Teck Cominco’s amended offer “could reasonably be expected to result in a ‘superior proposal’ for purposes of the combination agreement.” Therefore, Inco authorized its senior management and advisors to engage in negotiations with Teck Cominco.
The wording of Inco’s press release led to erroneous reports that the two companies were in talks. Teck Cominco denied that the two were talking or planned to talk about its offer for Inco shares. Teck Cominco’s offer expires at midnight on Aug. 16.
Teck Cominco president and CEO Don Lindsay was quoted in the “Sydney (Australia) Morning Herald” on Aug. 9 as saying his company has a number of other takeover targets in its sights should the Inco deal falls through. The interview may be read at www.SMH.comn.au. Search the site for “Teck Cominco”.