Falcone-Backed Mining Company’s Merger Falls Through
by Staff Writer on January 23, 2012
By Jing Chen
A Brazilian mining company backed by Philip Falcone’s firm Harbinger Capital has seen a rival Brazilian mining firm decline its merger offer.
Ferrous Resources proposed a $2.3 billion acquisition of MMX Mineracao & Metalicos last month, but according to a Business Weekreport, MMX turned down the offer on Thursday.
MMX made the initial merger proposal to Ferrous in November 2010, and the two companies have had several discussions about a possible merger over the past 18 months.
If the merger had gone through, Ferrous will have owned 53% of the combined company, with MMX owning the rest, Business Weekreported.
New York-based Harbinger has a 26% stake in Ferrous.
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