Indian mining giant, Sterlite Industries, today increased its bid for Asarco Industries to $2.56 billion (Rs. 12,200 Crores), topping rival Grupo Mexico's $2.47 billion bid (Rs. 11,856 Crores). The revision comes in the wake of an order by Texas Bankruptcy judge, Richard Schmidt, recommending Grupo Mexico's bid. The court held that the Grupo Mexico-backed plan was "superior" since it was "funded with sufficient cash to pay creditors in full at confirmation."

Sterlite Industries had originally made a $2.6 billion offer for Asarco in mid-2008, and won the bidding war against Grupo Mexico. However, the deal fell through in October 2008 when Sterlite withdrew its offer due to the downturn in copper prices. Sterlite had almost concluded the deal with a $1.4 billion (Rs. 6,720 Crores) bid, when Grupo Mexico re-entered the ranks early this year with an offer of $2.2 billion in cash along with a $280 million promissory note to the creditors.

Sterlite Industries is being advised by US heavyweight, Shearman & Sterling LLP, led by Partners Adam Givertz, Douglas Bartner and William J.F. Roll III. Asarco's legal advisors are Baker Botts LLP led by M&A Partners Soren Lindstrom and Samantha Hale Crispin and Bankruptcy Partners Tony M. Davis and James Prince II, among others. Milbank Tweed is acting as counsel for Grupo Mexico, led by Partner Robert Moore. Shearman has been a long standing counsel for Sterlite. Shearman was also involved in Sterlite's $1.5 billion (Rs. 7,200 Crores) ADR issue in July 2009.

Sterlite is a unit of UK-based Vedanta Resources plc, founded by billionaire Anil Agarwal.  Sterlite has been pursuing an inorganic growth strategy over the last few years. In 2007, Sterlite acquired Sesa Goa for just under $ 1 Billion (Rs. 4,800 Crores). Khaitan and Co., and UK law firm Travers Smith advised Sterlite on the transaction. In June 2009, Sesa Goa acquired Goa-based mining company, Dempo & Co. J Sagar Associates acted as legal advisors to Dempo & Co., while Luthra and Luthra advised Sesa Goa.

If Sterlite wins its bid for Asarco, it will be amongst the ten biggest acquisitions ever by an Indian company.