First Quantum disappointed by Inmet's rejection of offer

Thu Nov 29, 2012 9:23am EST

Nov 29 (Reuters) - First Quantum Minerals Ltd said on Thursday it is both "surprised and disappointed" that the board of Inmet Mining Corp has decided to reject the takeover proposal that it put forward earlier this month.

Toronto-based Inmet, which is building the huge Cobre Panama copper mine in Central America, said on Wednesday it had turned down a C$4.86 billion ($4.89 billion) unsolicited proposal from larger rival First Quantum, stating that the offer was "highly conditional" and not in the best interests of its shareholders.

"The transaction would have presented an opportunity to realize immediate and attractive cash value for the holders of Inmet shares while preserving the opportunity for both sets of shareholders to participate in the substantial upside value that we believe would be created through a combination," said First Quantum's Chief Executive Philip Pascall, in a statement.

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