Xstrata extends unsweetened bid, Teck gets EC approval

Xstrata (XSRAF-O, XTA-L) has extended its bid for the 80% of Falconbridge (FAL-T, FAL-N) it doesn’t already own by two weeks. The Swiss-based miner’s all-cash offer remains unchanged at $52.50 per share, and now expires on July 21.

The extension comes after Industry Canada said it will need up to another 30 days (potentially stretching into early August) to fully consider Xstrata’s offer. The Swiss-based miner also lost out on its appeal of Falconbridge’s shareholders’ rights plan.

Falco’s shareholders rights plan will remain intact until July 28. It prevents Xstrata from picking up additional shares of Falconbridge without triggering a massive dilution of its existing stake, and making an outright acquisition prohibitively expensive.

Xstrata shareholders recently approved their company’s bid for the Canadian miner but the plan still needs a nod from the European Commission. That decision is expected by July 13.

Meanwhile, the EC has approved Teck Cominco‘s (TCK.B-T, TCK-N) competing bid for Inco (N-T, N-N). The offer was approved as a “simplified” transaction, as neither customers nor competitors raised concerns about the deal.

Teck’s offer is contingent on Inco scrapping its planned nuptials with Falconbridge. The EC approved that transaction earlier this week, after agreeing to the pair’s proposed remedy of selling Falco’s high-grade Nikkelvery nickel refinery in Norway to LionOre Mining International (LIM-T, LMGGF-O, LOR-L).

Inco has further agreed to be snapped up by Arizona-based Phelps Dodge (PD-N). The pair intends to go ahead with the deal even if Inco fails to acquire Falconbridge.

Teck’s bid expires on July 24, Inco’s, on July 13.

In other news, the U.S. Court of Appeals for the Ninth Circuit has ruled that a lawsuit launched against Teck by two members of the Confederated Tribes of the Colville Reservation can proceed.

The Colville members contend that hazardous slag from Teck’s Trail lead-zinc smelter flowed down the Columbia River and into the United States.

The court dismissed Teck’s argument that the lawsuit should be dismissed on the grounds that it is a Canadian company operating in Canada and isn’t subject to U.S. environmental laws.

In early June, Teck reached an agreement with the U.S. Environmental Protection Agency (EPA) whereby Teck would complete a comprehensive human health and environmental assessments of the Upper Columbia River basin.

“From day one Teck Cominco has voluntarily sought a cooperative arrangement with U.S. authorities to address the public’s concerns surrounding Lake Roosevelt,” said Teck senior vice president of environment and corporate affairs Doug Horswill. “This agreement is a great step forward in allowing us to fulfill our commitment.”

The deal calls for Teck to fund the studies under the oversight of the EPA, and with the participation of the government of Canada, the U.S. Department of the Interior, the State of Washington, and the Spokane and Confederated Colville Tribes.

The studies would cover a 240-km stretch along the Columbia River, from the Grand Coulee dam to the Canadian border.