UPDATE 1-Teck Cominco says won't revise Fording offer
(Adds details. In U.S. dollars unless noted)
TORONTO, Sept 18 (Reuters) - Teck Cominco (TCKb.TO) will not revise its $13.5 billion offer for Fording Canadian Coal Trust despite tight credit markets and stock prices that have plunged since the offer was made in July, a spokesman for the company said on Thursday.
The deal has come into question this week as troubles among U.S. investment banks have raised worries Teck could have trouble securing the $9.8 billion it needs to borrow to finance the takeover.
And with resource stocks having retreated more than 15 percent since the deal was announced, some analysts had speculated Teck may try to revise the offer lower.
Asked if there was any chance that might happen, Teck spokesman Greg Waller said: "No".
He also said Teck is confident it can go forward with new projects despite soaring cost estimates for the Fort Hills oil sands project in northern Alberta, of which Teck owns 20 percent.
The Fort Hills partners -- Petro-Canada PCA.TO owns 60 percent -- said on Wednesday expected costs for first phase of the project had risen to C$21 billion ($19.6 billion) from C$14 billion.
The project is just one in Teck's pipeline that has suffered from massive cost inflation over the past two years.
Last fall, Teck suspended the Galore Creek copper-gold joint venture in British Columbia due to projected costs that have doubled to more than C$5 billion. Teck is also wrestling with whether to commit to funding the Petaquilla copper project in Panama, whose costs have soared to $3.5 billion.
Waller said the Fort Hills costs and Fording commitments would not alter its plans for other projects.
"We believe that we have the capacity to continue with the various plans we have in place," he said.
"Our focus certainly for the next 18 months is going to be on closing this (Fording) transaction and getting the debt paid down, but we do believe we can continue to move ahead with these other projects that we've got on the go as well."
He said the plan is that Fort Hills will be funded by future cash flow, rather than through external means.
($1=$1.07 Canadian) (Reporting by Cameron French; Editing by Peter Galloway)
