TORONTO – The directors of INCO LIMITED said again this week that they back the proposed business combination with PHELPS DODGE of Phoenix. At the same time, the board is asking that shareholders reject the offer from Brazilian COMPANHIA VALE DO RIO DOCE (CVRD).
Subject to certain exceptions, the combination agreement between Inco and Phelps Dodge requires that Inco’s board continue to recommend that shareholders vote in favour of the arrangement between Inco and Phelps Dodge, unless the board determines that a competing acquisition proposal constitutes a “superior proposal”. Inco has been in talks with CVRD concerning its offer, but the Brazilian company has not agreed to improve its offer so that the Inco board could consider it “superior”.
The following websites may be of interest: www.Inco.com, www.PhelpsDodge.com and www.CVRD.com.br.