Phelps Dodge Continues to Support Inco's Bid for Falconbridge

Phelps Dodge Corp., a mining company, has reaffirmed its support for Inco Ltd.'s bid to acquire Falconbridge Ltd. Inco has offered C$64.40 per Falconbridge share, a move supported by Falconbridge's board after reviewing a revised offer from Xstrata Plc. The Inco bid is separate from Phelps Dodge's bid to acquire Inco, which is not contingent on the completion of the Falconbridge deal.

Key Takeaways:

Phelps Dodge continues to support Inco's bid for Falconbridge Ltd., valuing the shares at C$64.40.
Falconbridge's board has backed its recommendation for the Inco offer after reviewing Xstrata Plc's revised bid of C$62.50 per share.
The Inco bid is separate from Phelps Dodge's bid to acquire Inco, which is not contingent on the completion of the Falconbridge deal.
Falconbridge shareholders have until July 27 to tender their shares to the Inco offer.
Inco and Phelps Dodge have agreed to a bid where Phelps Dodge will acquire Inco, although the specifics of this agreement are not stated.
Xstrata Plc has made a revised cash offer for Falconbridge, valued at C$62.50 per share, which Falconbridge has evaluated.

Statistics:

C$64.40: the value of Inco's bid for Falconbridge shares as of the close of market Monday.
C$62.50: the value of Xstrata Plc's revised cash bid for Falconbridge shares.
July 27: the deadline for Falconbridge shareholders to tender their shares to the Inco offer.

Sources:

Dow Jones Commodities News via Comtex (Jul 24, 2006)
Comtex SmarTrend (07-19-2006)