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Asarco OKs Mexican bid
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October 15, 1999: 11:21 a.m. ET
Copper producer accepts $1.18B cash offer, nixing Phelps Dodge deal
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NEW YORK (CNNfn) - Copper producer Asarco Inc. Friday accepted a sweetened $29.75 a share, or $1.18 billion, buyout bid from Grupo Mexico SA, rejecting its earlier merger pact with Phelps Dodge Corp.
Phelps Dodge (PD), of Phoenix, previously said it wouldn't raise its existing $1.13 billion offer for New York-based Asarco (AR). A spokesman for Phelps Dodge couldn't be reached Friday.
Asarco recently saw its own merger deal with Cyprus Amax Minerals Inc. scuttled by a higher offer from Phelps Dodge. In what became a saga of squabbling and accord, Phelps and Asarco said they would merge for about $1.13 billion.
Then Grupo Mexico stepped forward with an offer of $29.50 a share, or about $1.17 billion. It already owns about 9.8 percent of Asarco and its Mexican copper empire is built up largely of former Asarco properties.
But the cash offer from Grupo Mexico had come under pressure as shares of Phelps Dodge rose in recent weeks, prompting the slightly higher offer by Grupo Mexico that Asarco accepted Friday.
Early Friday, despite a down market, shares of Phelps Dodge rose 1-1/16 to 58-5/16. Asarco rose 1/8 to 29-7/16. 
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Asarco
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