NEW YORK Inmet Mining
Corp., which is the subject of a hostile takeover bid from
First Quantum Minerals Ltd., has waived its shareholder rights
Inmet waived the plan, also
known as a "poison pill" due to its use by companies as a way
to defend against hostile takeovers, because there was enough
time provided to the board to fully review strategic
alternatives, the Toronto-based mining company said Feb.
and British Columbia-based First Quantum declined to
Inmet continues to recommend
that shareholders reject First Quantums Canadian
$5.1-billion ($5.04-billion) offer, which analysts have said is
too low (
amm.com, Jan. 23).
Inmet maintains it has a solid
portfolio with low-cost operations in areas without political
risk, and also has major upside potential for its flagship
copper development project, Cobre Panama, which should boost
Inmets copper production by 176 percent by 2018.
The company said it plans to
provide shareholders with further information regarding its
strategic alternatives prior to the Feb. 27 expiration of the
First Quantum offer.
However, one analyst said
Inmets decision to waive its shareholder rights plan
could mean that nobody else is coming forward. "I think
its a done deal. Unless theres a white knight that
comes out of the woodwork, it should all be said and done (by
Feb. 27)," he said.
Inmet has said previously that
it was mulling selling additional minority stakes in Cobre
Panama, a move First Quantum expressed concern about (
amm.com, Jan. 14).