Inco becomes takeover target

Inco becomes takeover target

TORONTO (Reuters): Inco Ltd.'s outgoing chief executive Mike
Sopko said on Friday he was aware that the company, the Western
world's biggest nickel producer, was the subject of takeover
speculation and said such a move was possible.

Sopko, who steps down as head of the company on April 25 to
make way for Scott Hand, said Inco had been on the industry's
radar screens for some time.

Speculation that mining giants like Anglo American, WMC, or
Britain's Rio Tinto Plc, could make a offer to buy Inco, which
has no single major shareholder and highly tempting assets, has
heightened since last year as the global mining industry shrinks
under consolidation.

He acknowledged there was a trend toward larger mining
companies and said Inco was not averse to diversification, but
stressed that any deal would have to make sense.

Inco is expected to produce 460 million pounds of nickel this
year from its operations in Canada and Indonesia.