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.