Sterlite Industries Boosts Offer For Asarco

SANDY SHORE

DENVER (AP) — Sterlite Industries Ltd. raised its bid Friday for Asarco LLC by 20 percent to $2.57 billion in cash, topping rival Grupo Mexico's offer to regain control of the mining company that has been operating under bankruptcy protection.

Mumbai-based Sterlite said the bid was revised to provide full cash payments to asbestos creditors and surplus cash after closing for Asarco's operations.

Grupo Mexico spokesman Tom Johnson declined immediate comment.

The latest offer came nearly two weeks after U.S. Bankruptcy Judge Richard Schmidt recommended Grupo Mexico be allowed to reacquire Tucson, Arizona-based Asarco. The Mexico City-based conglomerate lost control over Asarco shortly after its subsidiary filed for bankruptcy four years ago.

He said its $2.2 billion bid is more likely to fully repay creditors than Sterlite's $2.1 billion offer.

His recommendation went to a federal judge in Texas who is expected to make a final decision on Asarco's future sometime this fall.

The two global companies are vying for Asarco's assets, including three Arizona mining operations and a Texas refinery.