The mining giant Grupo Mexico has offered $1.3 billion in cash to outbid London-listed Vedanta Resources for acquiring bankrupt copper mining firm Asarco, says a media report.
The $1.3 billion of cash by the Mexican firm would also help to retrieve its ailing unit and America's third largest copper producer, Asarco, out of bankruptcy.
"Mexican mining company Grupo Mexico SAB threw a fresh punch in its fight to retain US copper subsidiary Asarco LLC, pledging $1.3 billion in cash to take the unit out of Chapter 11 proceedings and defeat a rival bid by Vedanta Resources PLC," The Wall Street Journal said.
In March, Vedanta Resources' Indian arm Sterlite Industries had offered $1.7 billion, which included $1.1 billion in cash, plus a note for $600 million for Asarco.
The report published online stated that US bankruptcy judge would have to determine which offer better serves Asarco's many creditors, including the US and several other states, which are seeking money to clean up mining-related pollution.
The report said that Grupo Mexico told the US Bankruptcy Court in Corpus Christi that a key group of Asarco creditors supported its offer. The creditors were claimants to damages from asbestos liabilities that could run into the hundreds of millions of dollars.
A committee of asbestos litigants had been opposed to the deal to sell Asarco to Vedanta Resources, which has most of its assets in India, it added.
"This is a sea of change with the creditors," quoting Victor Karl, a former Asarco executive, who is also an unsecured creditor in the bankruptcy proceedings, The Wall Street Journal said.
Grupo Mexico's announcement renews its fight with Vedanta over Asarco, which has been in bankruptcy protection since 2005. Any sale of Asarco's assets requires approval from Judge Richard Schmidt, who is overseeing Asarco's reorganisation, the report noted.
Last year, Vedanta walked away from a deal for Asarco, valued at $2.6 billion when copper prices plummeted and credit markets seized up, it added.
