Miner Grupo Mexico retools Asarco restructure plan

MEXICO CITY Oct 17 (Reuters) - Mexican copper producer Grupo Mexico is reevaluating its plan to restructure its bankrupt U.S. subsidiary Asarco after an Indian company dropped a rival bid for the U.S. miner citing trouble in the financial markets, a Grupo Mexico lawyer said on Friday.

This week India's Sterlite Industries (STRL.BO)(SLT.N) said it will not be able to close a $2.6 billion deal to buy Asarco, which has copper mines in Arizona but is struggling with millions of dollars in environmental clean up claims.

Sterlite, a unit of Vedanta Resources Plc (VED.L), has said it will not close the deal without a "substantial reduction" in the purchase price, leaving Grupo Mexico (GMEXICOB.MX) as the only company in the running.

Grupo Mexico (GMEXICOB.MX) owns 100 percent of Asarco's equity but lost control of the board because of the bankruptcy and has been fighting in court to take it back.

But as copper prices plummet on worries of a global economic slowdown, Grupo Mexico says it too is taking a second look at its original $2.7 billion counteroffer for Asarco.

"Considering Vedanta's withdrawal and the economic situation in the world right now we are reevaluating all the alternatives we have," said Jorge Lazalde, Grupo Mexico's legal council in the Asarco case.

Lazalde said its offer to pay off Asarco's creditors completely had not yet been changed. The Mexican company is putting together a new offer to present at the next court mediation in Texas scheduled for Oct. 30, he added.

Copper, a leading industrial metal and economic indicator, has tumbled more than 40 percent since hitting a record high at $8,940 a tonne in July, reflecting the deteriorating health of the global economy.

"The company is going to be worth a lot less now," Lazalde said. (Reporting by Mica Rosenberg; Editing by Christian Wiessner)