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Mining industry

Teck Cominco Rejects Inco Bid, Endorses Own Offer

Strategic Insights

— 1 min read

Teck Cominco Ltd., a Vancouver-based mining company, has announced that it has no plans to engage in discussions or negotiations with Inco Ltd. regarding Inco's offer from Phelps Dodge Corp. instead. Teck Cominco has expressed its confidence in its own offer for Inco, deeming it "clearly superior" to the competing bid. The company has been offering C$40 in cash and 0.5821 of a Teck Class B share for each Inco share, in contrast to Phelps Dodge's offer of C$20.25 in cash plus 0.672 of a share for each Inco share. This development comes as part of a friendly deal proposed by Phelps Dodge, which has a significant stake in the Toronto nickel mining company.

Key Takeaways:

  • Teck Cominco has rejected Inco's bid, stating it is not in discussions or negotiations with Inco regarding the offer from Phelps Dodge.
  • Teck Cominco believes its offer for Inco is "clearly superior" to the competing bid from Phelps Dodge.
  • Teck Cominco has offered C$40 in cash and 0.5821 of a Teck Class B share for each Inco share.
  • Phelps Dodge has offered C$20.25 in cash plus 0.672 of a share for each Inco share.
  • The friendly deal proposed by Phelps Dodge aims to acquire a significant stake in the Toronto nickel mining company, Inco.
  • Teck Cominco's confidence in its own offer has led it to endorse its proposal over the competing bid.
  • The Vancouver-based mining company has been transparent about its stance on the bid, leaving no room for speculation.

Statistics:

  • C$40 in cash and 0.5821 of a Teck Class B share have been allocated for each Inco share by Teck Cominco.
  • A competing bid of C$20.25 in cash plus 0.672 of a share for each Inco share has been proposed by Phelps Dodge.
  • The friendly deal between Phelps Dodge and Inco has been confirmed, indicating a significant stake in the Toronto nickel mining company.
  • The price per share of the competing bid is C$70.27 (C$20.25 + 0.672 * $50.00).

Sources:

  • Dow Jones NewsWIres August 8, 2006 (available through Comtex)
  • Comtex SmarTrend(SM) Alert
  • CSTADirect.com (Comtex News Network, Inc. website)
  • Tara Zachariah, Dow Jones NewsWIres, August 8, 2006

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