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Sterlite raises offer price for Asarco

Sterlite raises offer price for Asarco
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First Published: Fri, Sep 11 2009. 11 59 AM IST
Updated: Fri, Sep 11 2009. 11 59 AM IST
Mumbai: Indian metals maker Sterlite Industries Ltd said on Friday it had raised its open offer price for bankrupt US copper miner Asarco by a fifth to $2.565 billion.
Sterlite, a unit of India-focused mining company Vedanta Resources, has been facing off with Mexican miner Grupo Mexico for the assets of Asarco, which has been under bankruptcy protection since 2005.
“After extensive discussions and review, in order to provide full cash payment to asbestos creditors ... Sterlite increased its offer from $2.135 billion to $2.565 billion cash,” the company said in a statement.
The increase was to cover late and subordinated claims and to ensure surplus cash for smooth operations of Asarco, it said.
Shares in Sterlite, which has a market value of $11.2 billion, were trading down nearly 3% at Rs744.30 by 11:11am while the main index was up 0.1%.
Grupo Mexico acquired Asarco in 1999, but lacks board control due to the bankruptcy.
Last month a US court had recommended that Grupo Mexico be allowed to take control of Asarco as it was more likely to pay Asarco’s creditors in full.
On Thursday Asarco and Sterlite filed objections to the judge’s recommendations that Grupo Mexico regain control of Asarco.
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First Published: Fri, Sep 11 2009. 11 59 AM IST
More Topics: Sterlite | Asarco | Open offer | Grupo Mexico | Shares |