RIO DE JANEIRO Just when the wrangling for Falconbridge and INCO LTD. seemed to be coming to a conclusion, a new bidder has entered the fray. Last Friday, COMPANHIA VALE DO RIO DOCE (CVRD) made an all-cash offer of Cdn$86.00 per Inco share. That adds up to $16.7 billion.
The CVRD offer is not the highest on the board. Arizona-based PHELPS DODGE has offered $88.52 per share, including $20.25 in cash. The cash-and-share offer made by Vancouver’s TECK COMINCO is valued at $86.04, including $40.00 in cash. Teck Cominco has said it has not plans to enter into a bidding war.
The offer for Inco marks the third time CVRD has made moves toward the Canadian industry. Two years ago, rumours surfaced that CVRD was in the market to takeover Noranda. When that deal did not materialize, Noranda merged with Falconbridge. In February 2006 the Brazilian company bought Vancouver-based CANICO RESOURCES and its flagship Onca Puma nickel project in Brazil.
CVRD is the world’s largest iron ore producer. Visit www.CVRD.com.br.