Asarco Sues Phelps Dodge Over Takeover Bid

Copper producer Asarco Inc. said it filed a complaint in federal court in Manhattan, claiming Phelps Dodge Corp.’s $2.5-billion unsolicited bid for it and Cyprus Amax Minerals Co. violates U.S. antitrust laws. Asarco and Cyprus Amax agreed in July to a merger of their own, now valued at about $1.5 billion in stock. Phoenix-based Phelps Dodge said it would contest the suit. New York-based Asarco is seeking damages for what it says is Phelps Dodge’s wrongful interference with its proposed merger with Englewood, Colo.-based Cyprus Amax and for unfair competition. Shareholders of Asarco and Cyprus Amax are scheduled to vote on the proposed merger Sept. 30. On the NYSE, Asarco shares ended unchanged at $21.31, and Cyprus fell 25 cents to close at $17.31.