First Quantum Minerals Ltd's hostile C$5.1 billion ($5.17 billion) takeover bid for Inmet Mining Corp took a tense turn on Saturday, as the Canadian base metal miner delivered a letter to its rival suggesting Inmet may be trying to scuttle the bid, which is now in the hands of shareholders. The letter, addressed to Inmet's board chairman David Beatty, said several large shareholders of Inmet had approached First Quantum to express concern that the smaller company could be shopping around a minority interest in its Cobre Panama copper project in Central America."These concerns are apparently based upon discussions with a senior executive officer of Inmet," said First Quantum Chief Executive Philip Pascall in the letter released to the public.Inmet holds an 80-percent stake interest in the Panamanian project, which is one of the world's largest undeveloped copper deposits. The company has already sold a precious metal stream to help fund the $6.2 billion development.By selling an additional stake in Cobre Panama, Inmet would make itself less appealing as a takeover target, said Pascall, implying the move was tantamount to sabotage.
First Quantum Minerals Ltd. (First Quantum) is a mineral exploration, development and mining company. Shares of FM traded higher by 1.62% or $0.34/share to $21.39. In the past year, the shares have traded as low as $16.46 and as high as $25.00. On average, 1587650 shares of FM.TO exchange hands on a given day and today's volume is recorded at 4176477.
Inmet Mining Corporation is a global mining company that produces base metals with a focus on copper. Shares of IMN fell by 0.25% or $-0.18/share to $71.74. In the past year, the shares have traded as low as $37.01 and as high as $75.40. On average, 476867 shares of IMN.TO exchange hands on a given day and today's volume is recorded at 657517.
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