Brazil’s Companhia Vale do Rio Doce (RIO-N) is reporting that 174,623,019 shares of Inco (N-T, N-N) have been deposited to its C$86-per-share cash offer, representing a 75.66% fully diluted stake in the Canadian nickel miner.
As a result, CVRD is extending its offer, which was set to expire last night, to midnight in Toronto on Nov. 3, 2006.
“We plan to assist CVRD in every way we can to ensure a smooth integration of our two companies, to create a new global leader in the metals and mining industry.” said Inco chairman and CEO Scott Hand.
The combined assets of CVRD and Inco creates one of the world’s three largest diversified mining companies, with substantial positions in iron ore, nickel, ferroalloys, bauxite, alumina and manganese. It will have a market capitalization around US$70 billion.
Last Friday, Inco unveiled its largest quarterly profit in its 104-year history. For the recent third quarter, Inco earned US$701 million (US$3.08 per diluted share) on sales revenue of US$2.3 billion, up from earnings of US$64 million (US$0.29 per diluted share) on revenues of US$1.1 billion for the third quarter of 2005.
On Wednesday, CVRD president and CEO Roger Agnelli and Scott Hand will hold a press conference in downtown Toronto to mark the new era.
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