Is There a Rival Bid for Global Copper?

Is anyone going to step up and trump Teck Cominco Ltd.'s (TCK) friendly bid for Global Copper Corp. (GOCPF.PK)? Canaccord Adams analyst Wendell Zerb doesn't think so, but he doesn't think it is impossible either.

He puts the odds of a competing bid at 20% to 25%, while noting that the availability of large, quality copper assets has been "greatly depleted" by M&A activity. He figures Teck's cash-and-stock offer (worth at least $415.2-million) could get trumped by an all-cash bid.

In a note to clients Mr. Zerb wrote:

Given that holders of 40.4% of outstanding [Global Copper] shares, including all Global's directors and officers, have agreed to vote in favor of the transaction, we feel that investors should proceed under the assumption that, barring a superior competing offer, this deal will be approved via a {Global Copper] shareholder vote.

He recommends that shareholders hold onto their shares, at least until the final circulars are mailed.