Wednesday, June 24, 2009

Asarco Followup-6

"Grupo Mexico SAB [GMSA], Mexico's largest mining company, said Tuesday it is offering $2.9 billion in a new reorganization plan to take its US copper unit, Asarco LLC, out of Chpater 11 bankruptcy, where it has languished sincce August 2005. ... A unit of [GMSA] said Tuesday that the company's $2.9 billion offer is worth $500 million more than a competing plan from Vendanta Resources PLC, which Asarco's current management prefers. [GMSA] and Vendanta are vying for the support of Asarco's creditors. ... In the decade since the acquisition, [GMSA] has been accused of looting Asarco by slicing off the US unit's rich assets in Peru. Critics claim the company later forced Asarco into bankruptcy, before parties alleging environmental damage by the US copper giant could receive funds to clean up dozens of contaminated sites across the West. ... The court ordered [GMSA] to restore more than $6 billion in stock and dividends to Asarco. [GMSA] is appealing the order", Joel Millman at the WSJ, 3 June 2009, link:

GMSA's nonsense never stops. Now GMSA apparently figures it can buy its way out of a $6 billion judgment and get Asarco too, all for $2.9 billion. I say again, GMSA should not be permitted to bid here. Further, the US DOJ should extradite its officers from Mexico to try them here under 18 USC 152. That the DOJ hasn't is another DOJ disgrace. My last post on Asarco was on 15 April 2009, link:

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