NEW YORK First Quantum
Minerals Ltd. has extended until March 21 its Canadian
$5.1-billion offer to acquire Inmet Mining Corp.
About 43.2 million Inmet shares
representing about 61.45 percent of the outstanding shares had
been tendered to the offer as of 11:59 p.m. March 11, the
original offer expiration date, according to Vancouver, British
Columbia-based First Quantum.
The news came after
Toronto-based Inmet again urged its shareholders to reject
First Quantums hostile takeover bid (
amm.com, March 8).
"We are delighted with the
overwhelming support that Inmet shareholders have shown for our
offer," First Quantum chairman and chief executive officer
Philip Pascall said in a March 12 statement. "We have varied
our offer such that the minimum tender condition will now be
satisfied if more than 50 percent of the Inmet shares have been
tendered at the revised expiry time of the offer."
First Quantum said that if more
than 66.66 percent of the outstanding Inmet shares are validly
deposited under the offer by March 21, it will implement a
subsequent acquisition transaction to acquire the balance of
the Inmet shares.
First Quantum said the
transaction could take several months. "We urge all Inmet
shareholders who havent yet tendered to do so before
11:59 p.m. on March 21 so that they can receive the
consideration for their shares sooner rather than later,"
First Quantum anticipates being
able to complete the offer and begin taking up and paying for
shares soon after the offers expiration.
Inmet has said First
Quantums offer is inadequate and that shareholders should
expect their investment to do better as the company progresses
with the development of its Cobre Panama copper mine, which is
fully financed and permitted.
First Quantum claims it could
eliminate $1 billion in costs at Cobre Panama, which is
expected to drive Inmets copper production up 176 percent
by 2018 (
amm.com, Jan. 23).