Countering Grupo Mexico's bid to acquire US-based bankrupt miner Asarco, Vedanta Resources group firm Sterlite Industries today said it has increased the cash component of its offer by about $500 million to nearly $2.1 billion.
"Sterlite Industries is increasing its offer for purchase of substantially all of the operating assets of Asarco by approximately $500 million. The revised total consideration will increase to cash at closing of approximately $2.1 billion," the company said in a filing to the Bombay Stock Exchange (BSE).
Sterlite's revised offer has rivaled Grupo Mexico's bid, which has a cash portion of $2.2 billion, for the target company.
Besides further sweetening its offer for the ailing firm, the Indian firm said it has proposed to support a plan of reorganisation, according to which, it has pledged to pay all of Asarco's unsecured debts in full.
Sterlite Industries has for the second time in less than 10 days increased the cash portion of its bid for Asarco, even as its chairman Anil Agarwal (in the picture) has maintained that the company will not hike the offer and not enter into a bidding war.
However, the company has left the deferred payment in the form of notes unchanged at $208 million.
