Sterlite Industries India Ltd. (SLT) update #8
Posted by intelledgement on Sat, 12 Jul 08
Our Indian-based mining/refining company, Sterlite Industries (SLT), announced an agreement earlier this week with the union representing the workers of bankrupt US copper miner Asarco, which SLT have bid to acquire the assets of. The $2.6B bid, which has been accepted by the Asarco board, is on hold pending the bankruptcy court’s review of a rival bid from Grupo Mexico (GMBXF.PK).
SLT’s CEO, Anil Agarwal, stated, “We look forward to working with the unions and Asarco’s highly-skilled employees.” The new collective bargaining agreement fully retains all existing worker benefits. Sterlite has also committed to invest in Asarco’s operations will be improved and made more competitive. The new agreement runs through 2013; it would replace the existing agreement that expires in 2010.
Of course, the new agreement only becomes effective if the SLT acquisition is consummated. But the existence of the agreement can’t hurt Sterlite’s standing with the bankruptcy court when it considers the competing bids.