Amax bows out of takeover fight for Falconbridge

The move leaves Noranda and Trelleborg, who are offering $37 per share, with the only bid on the table. Their joint offer will expire Sept 15.

Noranda, a mining and forestry giant, and Trelleborg, a diversified company whose mining activities are the responsibility of subsidiary Boliden, h ave said th ey would become joint owners of Falconbridge in an equal partnership.

The price of Falconbridge shares on the TSE had been trading above $37, but it fell to $36.75 by the close of the first trading session following the Amax ann ouncement.

Noranda, with a 23.8% interest (27% voting interest) in Falconbridge, became the nickel giant’s largest shareholder last year by buying shares on th e open mar ket, in some cases paying as little as $22.45 per share. Trelleborg has a 3.4% i nterest in Falconbridge, the Swedish corporation having purchased those shares e arlier this year.

Amax will not walk away from the bidder’s table with empty pockets. An agreement (part of the original offer) between Amax and Falconbridge en titles Amax to c laim a $20-million(US) payment from the latter to cover expenses incurred in the event the takeover offer proves unsuccessful.

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