India 's Sterlite Industries Ltd. said Thursday it has raised its offer price for U.S. copper miner Asarco LLC by about $500 million, raising the stakes in a bidding war with Grupo Mexico SAB.
Sterlite, a subsidiary of London-listed Vedanta Resources PLC, upped its bid to about $2.1 billion in cash and a $207.9 million copper price participation note, the companies said in a statement.
The move follows an announcement by Grupo Mexico Monday saying it would raise its offer to buy Asarco out of bankruptcy to $2.2 billion in cash plus a $280 million note, an increase of about $500 million over its previous offer , Wall Street Journal reports.
Vedanta said that Sterlite has also proposed to support a plan of reorganisation that is intended to pay creditors in full their allowed amount of claims and full post petition interest. The revised total consideration will increase to $2.1 billion cash at closing. The 9 year copper price participation note of $207.9 million and the put option granted to asbestos creditors against their share of litigation interest remain unchanged , MarketWatch reports.
On July 10, 2008, Sterlite Industries had reached deal with unions representing the workers of Asarco LLC on the terms of the collective bargaining agreement that would go into effect once the proposed acquisition is approved by the bankruptcy court overseeing Asarco's Chapter 11 case. The bargaining agreement ensures that Asarco's operations would be improved and made more competitive , RTT News reports.