US Judge Backs Grupo Mexico Bid For Asarco

SANDY SHORE

DENVER (AP) — A bankruptcy judge has recommended Sterlite Industries' latest $2.57 billion cash bid for Asarco LLC's assets be disregarded, saying it was filed after the deadline and a competing bid remains superior.

U.S. Bankruptcy Judge Richard Schmidt said Sterlite could have submitted the bid before he recommended on Aug. 31 that Grupo Mexico be allowed to regain control over the Arizona mining company.

"The debtor should not be allowed to undermine the comprehensive evidentiary process and legal analysis that applied to the plans under consideration at the time of the court's recommendation," Schmidt wrote in a recommendation filed Thursday.

"To do so would set a bad judicial precedent and bog down the final confirmation determination with endless post-trial plan amendments by both plan sponsors and related litigation which could ultimately prevent consummation," he added.

A spokesman for London-based Vedanta Resources, the parent of Mumbai-based Sterlite, declined comment Friday.

Schmidt's recommendation goes to U.S. District Judge Andrew Hanen, who is expected to make a final decision by the end of October.