TORONTO (AP) -- Inmet Mining Corp. announced Wednesday it is rejecting an unsolicited takeover offer worth $4.9 billion by First Quantum Minerals Ltd.
The miner says First Quantum offered 50 percent of the deal's value, or up to $2.46 billion, in cash and the other half in the Vancouver miner's shares.
Inmet said its board of directors has determined the offer is not in the best interest of its shareholders. Inmet shares closed up 17.6 percent on the Toronto Stock Exchange to $62.00.
The company also announced a shareholder rights plan, or so-called poison pill, a common tactic used to fend off hostile takeovers.
Inmet said the bid presented Sunday followed an earlier unsolicited proposal from First Quantum, which offered $62.50 per Inmet share.
First Quantum has operations in Zambia, Mauritania and Australia. Earlier this month, Inmet denied a report suggesting the company was in talks regarding the potential sale to First Quantum.
Inmet recently dropped a hostile takeover bid of its own for Petaquilla Minerals Ltd. after it failed to win shareholder support.
In addition to Cobre Panama, Inmet has mines in Turkey, Spain and Finland.
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