Canadian paper sees Grupo Mexico eying Phelps
Sat Jul 29, 2006 5:53pm ET
yahoo.reuters.com
TORONTO, July 29 (Reuters) - Canada's Globe and Mail newspaper said on Saturday that copper producer Grupo Mexico (GMEXCOB.MX: Quote, Profile, Research) was considering a bid for Phoenix, Arizona-based Phelps Dodge (PD.N: Quote, Profile, Research) and had hired U.S. financial advisers to examine a possible acquisition.
The paper, quoting financial sources, said Grupo Mexico was interested in combining Phelps with its own Southern Copper Corp., the unit through which it controls its mining assets.
Grupo Mexico spokesman Juan Rebolledo had no comment. "It is a company policy not to comment on rumors or reports," he said.
A Mexican bid would complicate a friendly offer from Phelps for Canada's Inco Ltd. (N.TO: Quote, Profile, Research), an offer the U.S. company intends to pursue even after Inco admitted defeat in its own bid for Canadian rival Falconbridge Ltd. (FAL.TO: Quote, Profile, Research)
Inco failed on Friday to get the shareholder support it needed for its Falconbridge bid that would have been a prelude to a $40 billion three-way deal with Phelps.
The Globe reported one of its sources said Southern Copper was looking for "high quality assets" and the firm saw Phelps as a way to solidify its business in Latin America.
"Grupo Mexico would love to do a paper deal that sees them merge Southern Copper with Phelps Dodge," an investment banker working for a rival bidder told the Globe. "They want that deal because it would give them a fabulous collection of copper assets."
(Additional reporting by Tomas Sarmiento).
© Reuters 2006. All Rights Reserved. |
