Business
Teck Cominco revises offer for Inco
Teck Cominco revises offer for Inco.
About this update from Teck Resources Limited Class A
[{"type":"text","content":"\n\n\n\n\n>\n\nVANCOUVER, July 31 /CNW/ - Teck Cominco Limited (TSX - TCK.A; TCK.B;\nNYSE - TCK) today announced that it has revised its cash and share offer to\nacquire all the outstanding shares of Inco Limited (TSX, NYSE - N). Under the\nrevised offer, Inco shareholders will receive, subject to proration, C$82.50\nper Inco share in cash, or 1.1293 Teck Cominco Class B subordinate voting\nshares plus C$0.05 per Inco share. The revised offer represents C$40.00 in\ncash and 0.5821 of a Teck Cominco Class B subordinate voting share per Inco\nshare at full proration. The expiry time for the revised Teck Cominco offer is\nWednesday August 16, 2006 at midnight (Toronto time).\nDon Lindsay, Teck Cominco's President and Chief Executive Officer, said:\n\"We believe that our revised offer will be very attractive to Inco\nshareholders. It is also consistent with our stated policy that we will take a\ndisciplined approach to this transaction. The increased cash component\ncrystallizes substantial value for Inco shareholders who choose that option.\nThe lower number of Teck Cominco shares offered preserves more value for\nshareholders who participate in the great potential of the combined company,\nincluding existing Teck Cominco shareholders. Inco shareholders have a choice\nbetween the certainty and value of our offer and the highly conditional offer\nby Phelps Dodge which will not close until September, at the earliest, if at\nall. We have all regulatory approvals we require to complete our offer on\nAugust 16. Inco shareholders should tender their shares to our offer as soon\nas possible.\"\nTeck Cominco will pay up to a maximum of C$9.1 billion in cash and will\nissue up to 132.3 million Teck Cominco Class B subordinate voting shares\npursuant to the revised offer. This represents an increase in the cash\ncomponent of the offer of C$2.7 billion or 43%, and a decrease of 10.7 million\nshares or 7.5% in comparison to Teck Cominco's original offer. Teck Cominco\nwill fund the cash portion of the offer out of its C$3.6 billion of cash on\nhand and a committed term loan facility.\nAll other terms of the Teck Cominco offer are unchanged. Teck Cominco's\noffer was conditional on Inco's announced takeover bid for Falconbridge having\nbeen withdrawn or terminated and on the Inco/Falconbridge support agreement\nhaving been terminated in accorda...