The C$70-a-share offer in cash and stock was made Nov. 25, Toronto-based Inmet said today in a statement. That followed an Oct. 28 bid of C$62.50 from Vancouver-based First Quantum that was also rejected, Inmet said.
Inmet said its board and legal and financial advisers reviewed the offer and decided it isn’t in the best interests of the company’s investors.
First Quantum rose Nov. 12 amid speculation that it held informal takeover talks with Inmet, the U.K.’s Daily Mail reported at the time, without citing anyone. First Quantum is being advised by Goldman Sachs Group Inc. and Jefferies Group Inc., the U.K. newspaper said.
Inmet is developing the $6.2 billion Cobre Panama copper- mining project in the Latin American nation. The current plan is for Cobre Panama to produce 160,000 metric tons of ore daily, rising to 240,000 tons by the 10th year of operation, Inmet said in August. Inmet last year terminated a C$3.3 billion bid for Canada’s Lundin Mining Corp. (LUN)
The value of the First Quantum deal was calculated based on the 69.4 million shares of Inmet that were outstanding as of Oct. 31, according to data compiled by Bloomberg.
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