PHOENIX, Ariz. — Phelps Dodge Corp. shareholders will get a chance to vote on the proposed $17.7-billion takeover of Inco Ltd. on Sept. 25.
The meeting date eases some of the uncertainty around the U.S. copper firm's bid, which is facing competition from other suitors and some shareholder dissent.
Vancouver-based miner Teck Cominco Ltd. has its own $17.7-billion, cash-and-shares bid on the table and last Friday Brazil's Compania Vale do Rio Doce or CVRD, offered $19.87-billion in cash, or $86 a share, for the nickel miner.
Inco's board has consistently backed the Phelps bid, which began as a friendly three-way merger that included Falconbridge Ltd., although that firm is poised to be acquired by Switzerland's Xstrata PLC.
Phelps is also waiting for regulatory approval from Investment Canada, the agency which assesses the merits of foreign investments.
At least one major Phelps stockholder, Atticus Capital, has said it will vote against the Phelps-Inco combination because of the amount of debt the firm will incur in the transaction.
The eligibility of Phelps shareholders will be determined by Aug. 24.
Phelps Dodge is one of the world's leading producers of copper and molybdenum and is the largest producer of molybdenum-based chemicals and continuous-cast copper rod. It employs 14,500 people worldwide.
On the New York Stock Exchange early Monday, Phelps shares were trading up 20 cents at $90.52 (U.S.), while Inco stock on the Toronto market was off 28 cents at $88.80 (Canadian) — well above the CVRD bid price.
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