TORONTO (AFX) - Inco Limited said it has terminated its offer to fellow Canadian company Falconbridge Limited after its offer expired last night without receiving the minimum tender condition of 50.01 pct of shares.
The Canadian nickel miner said it would turn its attention to a two-way deal with US mining compnay Phelps Dodge Corp, the third partner in a proposed three-way merger deal between the mining companies announced last month.
Under the terms of the Phelps-Dodge transaction, Inco shareholders would received 0.672 Phelps Dodge shares, as well as 20.25 cad in cash for each Inco share. Inco said the implied value of the Phelps Dodge offer currently stands at 79.81 cad.
Inco said under the terms of the Falconbridge offer, Falconbridge will pay Inco 150 mln usd for failure to meet the minimum tender conditions. Falconbridge is also liable to pay Inco 300 mln usd if UK rival Xstrata PLC's bid for Falconbridge is successful. newsdesk@afxnews.com ks COPYRIGHT Copyright AFX News Limited 2005. All rights reserved. The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News. AFX News and AFX Financial News Logo are registered trademarks of AFX News Limited
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