First Quantum accessed Inmet’s data room, analyst believes
Posté: Mer 20 Fév 2013 10:29First Quantum accessed Inmet’s data room, analyst believes
Peter Koven | Feb 19, 2013 5:40 PM ET | Last Updated: Feb 19, 2013 5:43 PM ET
After months of lobbying, one analyst is suggesting that First Quantum Minerals Ltd. has finally been granted access to the data room at Inmet Mining Corp.
First Quantum made a $5.1-billion hostile offer for Inmet back in December, but Inmet rebuffed all of its efforts to enter friendly negotiations and view confidential data on the company’s giant Cobre Panama project. Since then, Inmet has opened its data room to other potential bidders.
Desjardins Securities analyst John Hughes believes First Quantum now has access as well.
“We believe that during the past week First Quantum gained access to the data room related to the US$6.1-billion Cobre Panama project for the first time,” he wrote in a note.
If true, it would suggest that Inmet is finally open to negotiating a friendly deal with First Quantum. Spokespeople at the two companies both declined comment.
On Tuesday, Inmet announced it is waiving its shareholder rights plan (or “poison pill”) as the company determined it has enough time to review all of its strategic alternatives before First Quantum’s bid expires on Feb. 27th.
Mr. Hughes sees four options for the company: continue to reject the bid and let shareholders decide, sell a minority stake in Cobre Panama, find a white knight bidder, or negotiate a friendly deal with First Quantum.
He now views a white knight as less likely, as he does not think a deal with a white knight would need to be preceded by an announcement on waiving the rights plan.
He believes a friendly deal with First Quantum is “perhaps” the best option, though he does not think First Quantum is planning to sweeten its bid. First Quantum has left this open as a possibility if it can enter friendly negotiations.
Peter Koven | Feb 19, 2013 5:40 PM ET | Last Updated: Feb 19, 2013 5:43 PM ET
After months of lobbying, one analyst is suggesting that First Quantum Minerals Ltd. has finally been granted access to the data room at Inmet Mining Corp.
First Quantum made a $5.1-billion hostile offer for Inmet back in December, but Inmet rebuffed all of its efforts to enter friendly negotiations and view confidential data on the company’s giant Cobre Panama project. Since then, Inmet has opened its data room to other potential bidders.
Desjardins Securities analyst John Hughes believes First Quantum now has access as well.
“We believe that during the past week First Quantum gained access to the data room related to the US$6.1-billion Cobre Panama project for the first time,” he wrote in a note.
If true, it would suggest that Inmet is finally open to negotiating a friendly deal with First Quantum. Spokespeople at the two companies both declined comment.
On Tuesday, Inmet announced it is waiving its shareholder rights plan (or “poison pill”) as the company determined it has enough time to review all of its strategic alternatives before First Quantum’s bid expires on Feb. 27th.
Mr. Hughes sees four options for the company: continue to reject the bid and let shareholders decide, sell a minority stake in Cobre Panama, find a white knight bidder, or negotiate a friendly deal with First Quantum.
He now views a white knight as less likely, as he does not think a deal with a white knight would need to be preceded by an announcement on waiving the rights plan.
He believes a friendly deal with First Quantum is “perhaps” the best option, though he does not think First Quantum is planning to sweeten its bid. First Quantum has left this open as a possibility if it can enter friendly negotiations.