July 1, 2001
When Lima's Grupo Milpo announced in May it intended to buy a controlling stake in a neighboring mine, the ground rocked. No company had ever launched a hostile bid for a competitor in the conservative Peruvian mining industry.
Owners of the target mine, Atacocha, charged that long-standing friendly relations between the two companies were being ripped to shreds. Milpo and Atacocha produce zinc side-by-side in the Andes and their mines are so close together that the companies actually exploit the same deposit of ore. Many in the Peruvian business world saw Milpo's bid as practically uncouth. Previous mining industry acquisitions were polite, private arrangements between controlling gro
A small mining company's hostile takeover of a neighbor mine is a test for the Peruvian capital markets.