Mining Mega Deal
Phelps Dodge (PD) has just announced a take over offer for Inco (N) and Falconbridge (FAL).
The merger will create a super major mining company and create the largest nickel producer in the world. This is the largest mining deal in history valued at approximately $48 billion. PD is offering $80.13 CAN for the combined Inco/Falconbridge.
In an effort to have the deal complete as planned PD is buying # billion of Inco debt in the form of subordinated notes, this will give Inco the flexibility it requires to complete the Falconbridge takeover. Inco has raised its bid for FAL to $62.11 CAN from $46.80 this should trump the current offer for FAL from Xstrata Plc of Switzerland.
This deal will be an industry changing deal as it sets the standard regarding size for global competitors.
The merger will create a super major mining company and create the largest nickel producer in the world. This is the largest mining deal in history valued at approximately $48 billion. PD is offering $80.13 CAN for the combined Inco/Falconbridge.
In an effort to have the deal complete as planned PD is buying # billion of Inco debt in the form of subordinated notes, this will give Inco the flexibility it requires to complete the Falconbridge takeover. Inco has raised its bid for FAL to $62.11 CAN from $46.80 this should trump the current offer for FAL from Xstrata Plc of Switzerland.
This deal will be an industry changing deal as it sets the standard regarding size for global competitors.
posted by Grant | 8:27 AM
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