CVRD increases offer for Canico shares

CVRD increases offer for Canico shares

Canadian junior resource company Canico Resource Corp announced today that it has entered into an agreement with Brazilian iron ore giant Companhia Vale do Rio Doce (CVRD) in which CVRD will amend the terms of its take-over bid to, among other things, increase its offer price for Canico shares. The price CVRD agrees to pay per Canico common share has increased from CA$17.50 to CA$20.80 (Canadian) in cash. CVRD has also entered into a lock-up agreement with certain Canico shareholders, representing 11.5 percent of outstanding Canico common shares, in which each locked-up shareholder will tender their Canico common shares to the offer. CVRD has agreed to mail a notice of change and variation amending the offer and an amended director's circular to Canico shareholders on or before November 17, 2005 until November 28, 2005, unless withdrawn or extended.