Sterlite hikes bid for Asarco

Sterlite Industries Ltd. said it had raised its open offer price for bankrupt US copper miner Asarco by a fifth to US$2.56bn. Sterlite, a unit of India-focused mining company Vedanta Resources Plc, has been locked in a bidding war with Mexican miner Grupo Mexico for the assets of Asarco, which has been under bankruptcy protection since 2005. "After extensive discussions and review, in order to provide full cash payment to asbestos creditors ... Sterlite increased its offer from $2.135 billion to $2.565 billion cash," Sterlite said. The increase was to cover late and subordinated claims and to ensure surplus cash for smooth operations of Asarco, it said. Grupo Mexico acquired Asarco in 1999, but lacks board control due to the bankruptcy. A few days back, a US bankruptcy court had recommended that Grupo Mexico be allowed to take control of Asarco as it was more likely to pay creditors in full. On Thursday, Asarco and Sterlite filed objections to the judge's recommendations that Grupo Mexico regain control of Asarco.