MEXICO CITY, April 13 (Reuters) - Grupo Mexico offered $1.3 billion of cash to recover bankrupt U.S. miner Asarco in a U.S. court on Monday, a Grupo Mexico lawyer said.
In the middle of court proceedings in Corpus Christi, Texas, Jorge Lazalde confirmed the amount of the offer, saying more details will be available after the hearing concludes.
The offer could be padded with additional payouts, a Grupo Mexico executive told Reuters.
"The plan still has to be finalized and presented to the judge ... and if its approved we'll move forward. Right now there is nothing more than a preliminary suggestion," the executive said.
India's Sterlite Industries (STRL.BO), a unit of London-listed Vedanta Resources Plc (VED.L), offered $1.7 billion -- $1.1 billion of cash, plus a $600 million of notes -- to take over the ailing Arizona-based miner, weighed down by heavy environmental claims.
Grupo Mexico (GMEXICOB.MX) acquired Asarco in a leveraged buyout in 1999, but lost board control due to the bankruptcy. In a separate court case in Brownsville, Texas, Asarco sued its former parent, saying it was not paid fair market value during the original sale. A U.S. district court judge ruled on April 1 that Grupo Mexico had committed a fraudulent transfer and ordered it to return as much as $6 billion of stock and dividends to Asarco, but the Mexican miner said it would appeal the decision.
Shares of Grupo Mexico rose 6.50 percent to 11.30 pesos on Monday.
Source: Reuters
Refer to our STREET view to know more about what the analysts think about the Sterlite bid for Asarco.
http://mergers-in-india.blogspot.com/2009/03/street-view-sterlite-asarco-deal.html
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