Sterlite Industries India Ltd. (SLT) update #5
Posted by intelledgement on Thu, 12 Jun 08
Some interesting developments in the Sterlite-Asarco-Grupo Mexico saga that began last month.
First, here is an article referencing the opinions of several analysts (Macquarie, Merrill Lynch, and UBS) to the effect that the deal on the table is good for Sterlite.
Second—and here’s our favorite bit so far—Grupo Mexico is now claiming foul in the bidding process that resulted in acceptance of Sterlite’s $2.6B bid for Asarco—the company Grupo Mexico have owned since 1999 and are accused of stripping of choice assets prior to taking it into bankruptcy in 2005 to avoid environmental and asbestos lawsuits—because “it was denied key information that would have allowed it to properly value Asarco.” LOL
Third, the US government has weighed in on the side of Sterlite, saying in papers filed with the bankruptcy court that blocking the sale as demanded by Grupo Mexico would delay resolution of the claims of the creditors for years.
So far, things seem to be going Sterlite’s way.