LONDON The board of Inmet Mining Corp. has formed a special committee to review an increased takeover bid by First Quantum Minerals Ltd. of C$72 ($72.93) per Inmet share, or a total of C$5.1 billion ($5.2 billion).
"The Inmet board will carefully evaluate the terms of First Quantums unsolicited bid," Inmet chairman David Beatty said in a statement. "We will (consider), among other things, whether or not the First Quantum offer adequately compensates our shareholders for Inmets full value."
The review will include the exploration and expansion potential at Cobre Panama and the possible increase in value Inmet shareholders would receive once the copper project achieves commercial production.
"We will also consider the potential risks associated with receiving First Quantum shares as consideration," Beatty added.
Inmets board will publish a formal recommendation to shareholders within 15 days, the company said. Until then, shareholders have been advised to not respond to the offer from Vancouver, British Columbia-based First Quantum, which is set to expire Feb. 14.
Toronto-based Inmet and its financial advisers also are investigating any possible strategic alternatives to enhance shareholder value, including some that predate First Quantums takeover offer.