Calcutta, June 3: Grupo Mexico has topped Sterlite’s bid to acquire US-based copper miner Asarco.

It has now offered $2.9 billion for the bankrupt miner compared with the $1.7-billion bid of Sterlite, owned by non-ferrous metal giant Vedanta Resources, an FTSE 100 company.

Grupo, which owned Asarco once and lost control after it went into bankruptcy, had earlier proposed to pay $1.55 billion for the Arizona-based company.

Apart from Grupo and Sterlite, US-based hedge fund Harbinger, which controls a sizeable part of Asarco’s bonds, is in the fray.

Asarco’s independent management, set up under the aegis of a bankruptcy court, is with Sterlite.

Three restructuring plans are being heard at the bankruptcy court of the Southern District of Texas, which will take a final call on Asarco.

Under the terms of the amended Chapter 11 plan, Grupo Mexico’s affiliate, Americas Mining Corp, would contribute $2.9 billion, which includes $1.3 billion in cash, $1.3 billion in escrow and the cash Asarco has on hand.

NRI billionaire Anil Agarwal, who owns Vedanta and Sterlite, has offered $1.1 billion in cash and $600 million in senior secured notes.

Sterlite is enjoying an exclusivity period for its offer. If Asarco does not back the Indian company’s plan, Sterlite will get a break-up fee.

Harbinger has asked the court to scrap Sterlite’s offer.

Asarco’s debts include more than $5 billion in claims for asbestos-related environmental damages.

Grupo has kept aside $250 million for the asbestos damages. The asbestos claimants believe the chances of getting back their money quickly are greater if Grupo wins.

The bidding war, similar to the closely contested acquisition battle played out between Tata Steel and Brazil’s CSN over Corus in 2006-07, has seen many twists and turns over the last 12 months.

Sterlite had proposed to buy the company at $2.6 billion last year but walked out of the deal as copper prices tumbled because of the global recession.

Grupo then appeared, offering as much as $4.2 billion for Asarco.

Asarco, formerly known as American Smelting and Refining Company, is an integrated producer in copper having around 2,600 employees.

It has facilities in Arizona and Texas.