NEW YORK Inmet Mining Corp. has rejected an unsolicited takeover offer from global copper miner First Quantum Minerals Ltd. and adopted a shareholder rights plan intended to regulate any future takeover bids.
Vancouver-based First Quantum submitted an unsolicited offer Nov. 25 to pay Canadian $70 ($70.50) per Inmet share, structured as 50 percent cash and 50 percent First Quantum shares. The cash component would have been capped at C$2.461 billion ($2.479 billion), while the maximum number of First Quantum shares would have been about 112.7 million, Inmet said.
Inmets board of directors said it notified First Quantum Wednesday of its refusal on the grounds that the proposal "is not in the best interests of Inmet shareholders."
The Nov. 25 proposal followed an Oct. 28 offer to acquire Inmet for C$62.50 per share.
Toronto-based Inmet posted net income of about $116.5 million in the third quarter, up 19 percent from the same period last year. First Quantum recorded third-quarter net income of $107.3 million, up 18 percent from a year earlier.
"The transaction would have presented an opportunity to realize immediate and attractive cash value for the holders of Inmet shares," First Quantum chief executive officer Phillip Pascall said in a statement, noting the company was "both surprised and disappointed" by Inmets rejection.
Inmet also announced Wednesday that its board of directors had approved a shareholder rights plan, which it said will give it more time to evaluate any future bids.