Inco Ends Bid for Falconbridge

Canadian nickel miner Inco Ltd., Toronto, has announced that it is dropping out of the bidding war for competitor Falconbridge Ltd. According to an AP report, Inco’s departure probably means that European mining company Xstrata PLC now has a better chance of acquiring Falconbridge.

Inco fell short of a late July deadline to acquire enough Falconbridge shares to close on its proposed deal.

Falconbridge has announced that its board will meet to reconsider the Xstrata offer as well as where any such deal would stand with Canadian regulatory authorities.

According to AP, Xstrata already owns about 20 percent of Falconbridge and has been trying to acquire the remaining shares.

In a press release, Xstrata’s CEO chief executive said Inco’s dropping out was welcome news.

Inco said it is now turning its attention to its own pending acquisition by Arizona-based copper company Phelps Dodge Inc. The bid by Phelps-Dodge is one of two being considered by Inco, with the other coming from fellow Canadian company Teck Cominco Ltd.