Inco Ltd. $85.50 – Toronto symbol N

INCO LTD. $85.50 (Toronto symbol N; Conservative Growth Portfolio; Resources sector; SI Rating: Average) is the world’s largest producer of nickel. It recently dropped a plan to merge with U.S.-based copper producer Phelps Dodge Corp. It now seems likely that an $86.00-a-share all-cash offer from Brazilian mining firm Companhia Vale do Rio Doce (CVRD) will succeed. We first recommended Inco at $41 in our January, 1995 issue, and the CVRD offer works out to a gain of 109.8%. Inco will undoubtedly try to attract another bidder, if only to get CVRD to raise its bid. In the meantime, Inco investors should hold their shares, and tender them to get the full $86.00 and avoid paying brokerage fees.