Sterlite hikes bid for bankrupt miner Asarco

Sterlite hikes bid for bankrupt miner Asarco
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First Published: Tue, Aug 11 2009. 12 58 PM IST
Updated: Tue, Aug 11 2009. 12 58 PM IST
London: Indian Sterlite Industries, a subsidiary of London-listed Vedanta Resources, on Tuesday said it has raised its bid for the operating assets of bankrupt US copper miner Asarco LLC.
Sterlite, battling Mexican miner Grupo Mexico for control of Asarco, said its revised offer included cash of $1.587 billion, up from $1.1 billion, and a $208 million copper price participation note, down from $770 million.
The new bid reflected an increase in copper prices and the expectations of creditors, it said.
Sterlite and Grupo Mexico are facing off in a Texan court in the final stage of a year-long tussle for the copper miner, which sought court protection in 2005 amid a worker strike and more than $1 billion of environmental damage and asbestos claims.
Asarco lawyer Jack Kinzie said on Monday that Starlite’s revised bid was worth $1.67 billion, including a note to creditors with a net present value of $83 million.
Grupo Mexico also upped its bid on Monday, increasing the cash portion by $260 million and bringing its value to $2 billion, a lawyer for Grupo Mexico told Reuters.
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First Published: Tue, Aug 11 2009. 12 58 PM IST
More Topics: Sterlite | Asarco | Grupo Mexico | Vedanta | Copper |