After having aid it was not intersted in a bidding war with rival suito Grupo Mexico, London-listed metal and mining group Vedanta Resources' Indian subsidiary, Sterlite Industries, today raised its offer for bankrupt copper miner and refiner, Asarco LLC, by approximately $500 million.
Sterlite also said that it has proposed to support a plan of reorganisation that is intended to fully pay creditors their allowed amount of claims and full post petition interest.
With this Sterlite's offer for the deal stands at $2.1-billion deal, behind Grupo Mexico's bid for Asarco is $ 2.2 billion. It is also now closer to its original $2.6-billion bid in May 2008 (See: Sterlite to acquire third-largest US copper producer Asarco for $2.6 billion)
If the deal goes through, fifth place Sterlite will become the world's third largest copper miner with an annual capacity of 650,000 tonnes and proven copper reserves of 5 million tonnes.
Grupo Mexico, which owns 100 per cent of Asarco's equity, made an alternate bid to block the sale of its subsidiary, and promised "full recovery" for its creditors.
The Grupo Mexico unit that owns the Asarco's shares filed had a court objection to the proposed sale to Sterlite, saying the bidding procedures were unfair and it failed to value Asarco properly.