Brazil’s Companhia Vale do Rio Doce (CVRD), the world’s largest iron-ore producer, announced this Monday, September 25 that it has reviewed the press release issued by Canada’s Inco on September 24, 2006.
The Brazilian company has made a US$ 17.3 billion offer for Inco Ltd., the Toronto-based company that is the world’s second-largest nickel miner.
CVRD said that it is pleased that Inco board of directors has recommended that Inco shareholders tender their common shares to CVRD’s offer to purchase all of the outstanding common shares of Toronto-based Inco at a price of C$ 86.00 (US$ 77) in cash per share.
Notwithstanding Inco’s management support, CVRD has yet to obtain several regulatory clearances in Canada and Europe before the conclusion of the offering process.
CVRD also announced that it intends to extend the expiry date of the offer from 8 pm (Toronto time) on Thursday, September 28, 2006 to 8 pm on Monday, October 16, 2006. This extension is intended to provide additional time to obtain a net benefit ruling under the Investment Canada Act and also to allow for expiry of the Phase I period under the EC Merger Regulation.
CVRD has been advised by the Investment Review Division of Industry Canada that the Minister of Industry, Maxime Bernier, will exercise his right to extend the review period under the Investment Canada Act for a further 30 days, although the Bernier may issue a ruling at any time during the review period.