Grupo Mexico Considers Bid for Phelps Dodge Corp.

Strategic Insights -

Grupo Mexico SA, a Mexican mining giant, is exploring a possible acquisition of Phelps Dodge Corp., according to a report in The Globe and Mail. The move comes as Phelps Dodge seeks to acquire Canadian nickel miner Inco Ltd. after its proposed three-way combination with Falconbridge Ltd. fell through. Teck Cominco Ltd. has also made an offer for Inco, providing a competing bid for the Canadian miner.

Key Takeaways:

  • Grupo Mexico is considering a bid for Phelps Dodge Corp., as reported by The Globe and Mail.
  • Phelps Dodge Corp. is seeking to acquire Canadian nickel miner Inco Ltd. after its plans for a three-way combination with Falconbridge Ltd. were unsuccessful.
  • Teck Cominco Ltd. has also made an offer for Inco, competing with Phelps Dodge Corp.'s bid.
  • Grupo Mexico's parent company is Southern Copper Corp. (PCU).
  • Grupo Mexico's potential bid for Phelps Dodge Corp. has not been confirmed, with the report citing "sources" but not providing further details.

Statistics:

  • Teck Cominco Ltd.'s offer for Inco consists of C$40 in cash and 0.5821 Teck share for each Inco share.
  • Phelps Dodge Corp.'s offer for Inco includes C$20.25 in cash plus 0.672 share for each Inco share.
  • The latest Comtex SmarTrend(SM) Alert, an automated pattern recognition system, indicated an UPTREND on 06-23-2006 for PD stock at $81.93.

Sources:

  • The Globe and Mail
  • Dow Jones Commodities News
  • Comtex News Network, Inc.
  • Southern Copper Corp. (PCU)