Grupo Mexico Bid for Asarco Raised

Mexican conglomerate Grupo Mexico raised its bid for copper company Asarco Inc. to $1.17 billion in cash Thursday, topping a day-old friendly $1.13-billion cash-and-stock pact between Asarco and Phelps Dodge Corp.

The Mexico City-based company said it would pay $29.50 for each of Asarco’s 39.8 million outstanding shares. The Phelps Dodge pact values Asarco at $28.43 a share based on Thursday’s closing price for Phelps Dodge stock.

Grupo Mexico, which owns 10% of New York-based Asarco, previously had submitted an offer that valued the company at $1.03 billion, or $26 a share. At that time, it said it would not raise the bid.

Asarco shares rose $1.75 to $29.75 before trading was halted. Phelps Dodge rose $1.44 to $54.44. Both trade on the NYSE.