Cobre accepts Phelps Dodge takeover bid

With the price of copper falling and no other suitor coming forward, the management of Cobre Mining (CBU-T) has decided to submit to a takeover attempt by Phelps Dodge (PD-N).

Cobre’s directors are recommending to its shareholders that they accept Phelps Dodge’s offer of US$3.85 per share for all outstanding shares and US10cents per warrant for Series A and B warrants.

During the past few months, the copper price fell by US15cents, to settle around US80cents per lb. Share prices of copper mining companies have dipped as a result.

Cobre had hoped other companies would make competing bids, but none stepped forward before the Feb. 3 deadline.

“Given the market, we believe the Phelps Dodge offer is the best alternative available for all shareholders,” states Cobre Chairman Jeffery Ward.

Cobre owns the Continental copper mine, 3 miles from Phelps Dodge’s Chino copper operations in southern New Mexico.