So much for the "friendly" deal!
Inmet Mining Corp. (IMN), the developer of the Cobre Panama copper project, reiterated its rejection of a C$5.1 billion ($5 billion) offer from First Quantum Minerals Ltd. (FM) for being too low.
Inmet granted First Quantum full access to carry out due diligence, the Toronto-based company said today in a statement. Inmet said it will continue to seek a sale of a minority stake in Cobre Panama.
To contact the reporter on this story: Sonja Elmquist in New York at selmquist1@bloomberg.net
TORONTO, CANADA--(Marketwire - Feb. 26, 2013) - Inmet Mining Corporation (TSX:IMN) ("Inmet") today provided the following update with respect to the First Quantum offer:
As of February 17, 2013, Inmet provided First Quantum with full due diligence access, including a Cobre Panama project site tour and access to key personnel. Despite its communication to Inmet shareholders stressing the link between due diligence and its ability to increase the offer, First Quantum has not increased its offer to date.
The implied value of the First Quantum offer has deteriorated from the initial offer price of $72 (assuming consideration comprising 50 percent cash and 50 percent First Quantum stock) to $66.35 per share at yesterday's closing price.
The Inmet Board reiterates its recommendation that Inmet shareholders reject the First Quantum offer and do not tender their shares.
Inmet will continue with its efforts to advance the sale of a minority stake in the Cobre Panama project, as such transaction is expected to support a higher valuation than what is implied through the First Quantum offer and would further mitigate the capital risk of Cobre Panama. Any such sale will be structured so as not to impede the access of Inmet shareholders to the First Quantum offer.
How To Withdraw Your Shares from the First Quantum Offer
Shareholders who have already tendered their shares and wish to withdraw those shares should contact their broker as soon as possible. Shareholders who have questions or require any assistance are asked to contact Inmet's information agent, Laurel Hill Advisory Group at 1-877-452-7184 or assistance@laurelhillag.com.
AI
