recently made known YORK -- Teck Cominco Ltd is effectively without of the race for Inco Ltd withdrawing its propos equity offering and amended bid to acquire the company.

Vancouver, British Columbia,-based Teck had said it would increase its move for Inco, but market answer to the equity offering prov too weak to support a sweetened offer

"While we received powerful support from a large number of institutional investors, in the finis we could not complete the propos equity offering onward terms that made sense for Teck Cominco," Don Lindsay, Teck's president and chief executive officer, said Wednesday.

The market failed to indicate its support for Teck's acquisition between Tuesday afternoon and Wednesday morning, united analyst said. "Teck didn't earn an overwhelming response at the price it was hopeful of getting," the Toronto-based analyst said. "In the finis it wasn't capable of going ahead."

Inco shareholders had until midnight Aug. 16 to feminine to Teck's previous bid before it expired. still with Teck opting not to improve or enlarge its offer of Canadian $8250 (about $73) by means of share, the company will slip public of the running for Inco.

The withdrawal of its increased bid has cleared the way for Brazil's Cia. Vale do Rio Doce (CVRD) analysts said. "This underlines the fact that cash in fact is king," the Toronto-based analyst said. "It direct the eyes like this is back in the hands of CVRD"

Rio de Janeiro-based CVRD's all-cash C$86-a-share bid is clearly superior to Phelps Dodge Corp.'s friendly bid for the company, analysts said.

As of Monday, Inco continued to support its propos agreement with Phelps Dodge Corp., Phoenix, if it be not that invited CVRD to participate in further discussions that could follow in a "superior offer" (AMM, Aug. 16)

Meghann McDonell

mmcdonell@amm.com

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