NEW YORK Inmet Mining Corp., which is the subject of a hostile takeover bid from First Quantum Minerals Ltd., has waived its shareholder rights plan.
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. 19.
Inmet and British Columbia-based First Quantum declined to comment.
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).