Tender offer on PT.Inco unlikely: Official

Ministry of Energy and Mineral Resources insists that South Sulawesi nickel miner PT. Inco to stay floated at the Jakarta Stock Exchange despite the fact that its parent company Canadian miner Inco Limited had been acquired by Brazilian miner Companhia Vale do Rio Doce (CVRD).

Director General of Coal and Mineral at the ministry Simon Sembiring said on Sunday interview that plan to de-list PT.Inco from JSX trough tender offer was against contract of work (CoW) signed by the government and PT.Inco. ?We have met with Bapepam (Security Exchange Commission) and have reached understanding on the (tender offer) issue. Bapepam has acknowledged that CoW is higher than Bapepam regulations,? he said. He explained that under the CoW, Inco is required to float 20 percent of its shares at Indonesian stock exchange.

Market had been speculating that CVRD will do a tender offer on PT Inco's shares in Indonesia as Bapepam regulation dictates that the new controlling shareholder must make tender offer on shares it does not own.

A source familiar with the matter said that Bapepam is expected to make announcement in a next few days, confirming that CVRD would not be required to make tender offer.(alex)