Has takeover target First Quantum Minerals turned predator?
Its shares jumped 39p to 1417p in London amid speculation that its management has recently held informal takeover discussions with Inmet Mining Corporation, a Canadian producer of copper, zinc and gold, whose shares rose C$1.7 or 3 per cent to C$57.01 on the Toronto exchange.
Word is First Quantum Minerals is being advised by Goldman Sachs and Jefferies and is ready to bid up to C$5bn for Inmet. Any deal will involve bridging finance of around C$2.8bn, which apparently will be provided by Citigroup, Standard Chartered and JP Morgan.
Inmet’s main asset is the Cayeli copper and zinc mine. It is located in the province of Rize near the Black Sea coast of north- eastern Turkey. It is also developing a C$6.2bn copper and gold mine in Panama that will be the country’s largest.
First Quantum for months was bogged down by a row over a copper project in the Democratic Republic of Congo, which saw it take legal action against Eurasian Natural Resources, 0.9p easier at 289.10p. The two reached agreement in January with ENRC agreeing to pay $1.25bn to First Quantum in order to settle the acrimonious dispute.