Inmet Board Reiterates Rejection of First Quantum Offer
Inmet Mining Corporation (IMN.TO) reiterated its recommendation that shareholders reject a takeover offer by First Quantum Minerals (FM.TO).
Inmet notes that it provided First Quantum with full due diligence access, including a Cobre Panama project site tour and access to key personnel. "Despite its communication to Inmet shareholders stressing the link between due diligence and its ability to increase the offer, First Quantum has not increased its offer to date," Inmet said in a release.
In addition, Inmet said the implied value of the First Quantum offer has deteriorated from the initial offer price of $72 (assuming consideration comprising 50% cash and 50% First Quantum stock) to $66.35 per share, based on Monday's closing price.
Inmet said it will continue with its efforts to advance the sale of a minority stake in the Cobre Panama project, "as such transaction is expected to support a higher valuation than what is implied through the First Quantum offer and would further mitigate the capital risk of Cobre Panama."
IMN shares were up 26 cents to $65.78 while FM shares gained 25 cents to $18.66.
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