Teck throws in Inco towel, nixes plan to sweeten bid

novel YORK -- Teck Cominco Ltd is effectively on the outside of the race for Inco Ltd withdrawing its propos equity offering and amended bid to acquire the company.

Vancouver, British Columbia,-based Teck had said it would increase its present for Inco, but market replication to the equity offering prov too weak to support a sweetened offer

"While we received sinewy support from a large number of institutional investors, in the extreme point we could not complete the propos equity offering upon terms that made sense for Teck Cominco," Don Lindsay, Teck's president and chief executive officer, said Wednesday.

The market failed to present to view its support for Teck's acquisition between Tuesday afternoon and Wednesday morning, individual analyst said. "Teck didn't secure an overwhelming response at the price it was hopeful of getting," the Toronto-based analyst said. "In the extremity it wasn't capable of going ahead."

Inco shareholders had until midnight Aug. 16 to delicate to Teck's previous bid before it expired. on the contrary with Teck opting not to improve or reach out its offer of Canadian $8250 (about $73) for share, the company will slip on the outside of the running for Inco.

The withdrawal of its increased bid has cleared the way for Brazil's Cia. Vale do Rio Doce (CVRD) analysts said. "This underlines the fact that cash in truth is king," the Toronto-based analyst said. "It direct the eyes like this is back in the hands of CVRD"

Rio de Janeiro-based CVRD's all-cash C$86-a-share bid is clearly superior to Phelps Dodge Corp.'s friendly bid for the company, analysts said.

As of Monday, Inco continued to support its propos agreement with Phelps Dodge Corp., Phoenix, on the contrary invited CVRD to participate in further discussions that could arise in a "superior offer" (AMM, Aug. 16)

Meghann McDonell

mmcdonell@amm.com

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