Phelps Dodge/Inco Acquisition News

Phelps Dodge Corp. announced today it received notification that the U.S. Dept. of Justice & the U.S. Federal Trade Commission have granted early termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 relating to Phelps Dodge's proposed acquisition of Inco Ltd.

As announced on June 26th, Phelps Dodge & Inco agreed to combine in a transaction under which Phelps Dodge will acquire all of the outstanding shares of Inco for a combination of cash and shares of Phelps Dodge. Inco shareholders would receive 0.672 shares of Phelps Dodge common stock plus C$17.50 per share in cash for each Inco share. Simultaneous with its entry into the agreement with Phelps Dodge, Inco entered into an agreement with Falconbridge to increase its recommended offer for Falconbridge.

Under the terms of its enhanced offer, Inco increased the cash component of the offer from C$12.50 to C$17.50 & the exchange ratio from 0.524 shares of Inco to 0.55676 shares of Inco for each Falconbridge share.