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Sterlite keen to clinch Asarco deal at 'a right price'

Posted on: Tue, 27 Jan 2009 21:10:00 EST

Symbols: VDNRF, AR

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New Delhi, Jan 27, 2009 (Asia Pulse Data Source via COMTEX) --
VDNRF | Quote | Chart | News | PowerRating -- Billionaire Anil Agarwal-promoted Sterlite Industries today said it is keen to buy US-based copper miner Asarco, but is for negotiating a "right price" for the deal.

"...We have been in negotiations with the management of the company and the court for a renegotiated price. At the right price we are keen to acquire the asset," Vedanta Resources Executive Chairman Anil Agarwal told news broadcaster CNBC.

After initially offering USD 2.6 billion for the target company, Sterlite had lowered its bid by about USD 500 million after valuation of the firm fell amid the global economic slowdown and as copper prices plunged by over 60 per cent.

In May last year, Sterlite Industries, the Indian arm of London-listed mining major Vedanta Resources Plc, had inked a definitive agreement to buyout Asarco. The proposed buyout worth USD 2.6 billion would be the largest transaction abroad by an Indian company this year.

Sterlite was to fund the acquisition through a combination of debt and existing cash reserves.

Asarco, formerly known as American Smelting and Refining Company, is the third largest copper producer in the US. The company had filed for bankruptcy protection in 2005 after being sued for USD 1 billion over environmental issues.

It has produced 2.35 lakh tonnes of refined copper in 2007.

The US-based firm has a smelter and refinery in Texas. For the year ended December 31, 2007, Asarco had reported a revenue of around 1.9 billion dollars.

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