LAWFUEL – Law News Network – Phelps Dodge Corp., the world’s third-largest copper producer, agreed to buy Canadian nickel miners Inco Ltd. and Falconbridge Ltd. for $40 billion, protecting the two companies from hostile suitors in the largest mining takeover.
Phelps Dodge’s deal will thwart Canada’s Tech Cominco Ltd.’s hostile bid of C$15.2 billion bid for Inco. Switzerland’s Xstrata Plc may also be clocked in a bid made last month for the 80 percent of Falconbridge it doesn’t already own for C$52.50 share. Phelps Dodge said that under the terms of its takeover, Inco’s offer for Falconbridge will be worth about $62.11 a share.
Inco is being advised by Morgan Stanley, RBC Capital Markets and Goldman Sachs Group Inc., and its counsel are Sullivan & Cromwell and Osler, Hoskin & Harcourt LLP.