Inmet says it's in talks with possible allies to fend off First Quantum takeover
TORONTO, Cananda - Inmet Mining Corp. (TSX:IMN) is in talks with several parties who may help it fend off a $5.1-billion hostile takeover by First Quantum Minerals (TSX:FM).
Inmet says several unidentified parties are examining confidential information and discussions are ongoing.
Toronto-based Inmet had already cautioned its shareholders against First Quantum's bid and says in a formal circular that they should reject it.
Among other reasons, Inmet says Vancouver-based First Quantum has no experience developing a project the size of its Cobre Panama copper mine.
It also says the First Quantum offer undervalues Inmet's assets and will deprive Inmet shareholders of the potential upside from Cobre Panama.
First Quantum's offer of $72 per Inmet share is set to expire Feb. 14 but the company has the option to change that date.