Bid Reduced By $75M, Cash Component Hiked To $1.58M


Mumbai: Sterlite Industries, a subsidiary of Anil Agarwalcontrolled Vedanta
Resources, has revised its offer for the operating assets of bankrupt US copper
miner Asarco.
   “Sterlite Industries has changed its bid to purchase Asarco’s operating
assets. The revised consideration includes cash of $1,587 million and a $208
million copper price participation note (reduced from earlier $770
million),’’ the company informed BSE on Tuesday. The company was to earlier
pay $1.1 billion in cash for Asarco in addition to the senior secured
non-interest bearing promissory notes.
   Sterlite said the consideration was changed to reflect an increase in
copper prices and to meet the expectations of creditors. Higher cash
consideration reflects its offer of cash in lieu of the reduction in value
of the copper price participation note from $770 million to $208 million.
   Sterlite will also be the beneficiary of 50% of the proceeds from general
unsecured creditors’ interest in a judgment against Americas Mining
Corporation awarded by US district court of Texas, Brownsville division,
once the general unsecured creditors are paid in full, including post
petition interest.
   Sterlite is battling Grupo Mexico for control of Asarco, whose mines have
estimated reserves of 5 million tonnes of contained copper. For the year
2008, Asarco had total revenues of nearly $1.9 billion.

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