Asarco...US court still favours Grupo Mexico

US bankruptcy judge rejected attempts by Sterlite Industries Ltd. to sweeten its offer for US copper miner Asarco LLC, and recommended for the second time that rival bidder Grupo Mexico SAB de CV regain control of the company. Sterlite, however, maintained it was still in the race to acquire the copper miner. In court papers, US Bankruptcy Judge Richard Schmidt recommended that a US district court judge in Brownsville, Texas approve Grupo Mexico's US$2.48bn offer to repay Asarco's creditors in full, saying that it was too late for Sterlite to make changes to its offer. "Considering the volatile commodities market and world economy, time is of the essence in moving this case toward confirmation and consummation," Schmidt wrote. He had first recommended Grupo Mexico's bid in August, saying that it would offer more recovery to Asarco's creditors than Sterlite's plan. After the judge's recommendation in August, Sterlite raised its offer for Asarco to US$2.56bn and said it would let Grupo Mexico out of an US$8bn potential legal liability stemming from the 2003 transfer of Asarco's stake in Peruvian miner Southern Copper Corp. The district court sent the issue back to the bankruptcy court to determine whether Sterlite's latest offers should be considered, leading to Judge Schmidt's latest recommendation.