12 Sep 2009, ET Bureau
MUMBAI: Metals major Sterlite Industries on Friday raised its bid for acquiring Asarco, the third-largest copper company in the US, for the third time in two months. The Anil Agarwal-controlled company said the revised bid would now include an all-cash offer of $2.56 billion (about Rs 12,300 crore at current exchange rates), compared with its earlier bid of $2.13 billion that was rejected by the Texas Bankruptcy Court, which had recommended rival Grupo Mexico’s offer instead.
“After extensive discussions and review, in order to provide full cash payment to asbestos creditors and to allow late file claims and to provide for surplus cash... for the smooth operations of Asarco, Sterlite increased its offer,” Sterlite said in a statement to BSE.
Sterlite’s latest announcement is a shade better than rival Grupo Mexico’s offer, which consisted of $2.2 billion in cash plus a $280-million promissory note to the creditors.
The District Court in Texas is taking a final view of the two competing bids and the court is expected to pronounce its judgement by September-end.
The bid to acquire Asarco, which started last year, was described as one of India’s largest buyout deals, before the financial collapse last September led to a devaluation in Sterlite’s offer price.
Acquisition of copper mines and an entry into the US market were the main reasons for the contest between Sterlite and Grupo Mexico to own Asarco.
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