Wednesday, February 04, 2009

Asarco - Sterlite deal rumored

reports that Asarco has come to agreement to sell itself to India's Sterlite Industries for a price below the original offer of $2.6 billion. Asarco's parent company Grupo Mexico apparently said the company is only worth $200 million now because of falling copper prices. A deal may be signed within 2 weeks, although Grupo warns creditors may only receive pennies on the dollar of what they're owed. [right, Mission Mine, Arizona. Credit, Asarco Mineral Discovery Center]

Some of the biggest liabilities are environmental and asbestos-related. The original Sterlite offer would have given them $2.1 billion. There are no dollar figures on what the new deal will bring.

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