Sterlite, Asarco unions reach agreement

The unions representing the workers of Asarco LlC and Sterlite Industries, a subsidiary of Vedanta Resources Plc and a party to an agreement to acquire substantially all assets of Asarco, jointly announced today that they have reached agreement on the terms of the collective bargaining agreement that would go into effect once the proposed acquisition is approved by the bankruptcy court overseeing Asarco's chapter 11 case. "We regard our employees as a vitally important part of our business and are happy to have concluded a mutually satisfactory agreement with their representatives.Sterlite is also pleased that it has been granted bid protection by the bankruptcy judge,which represents another important milestone in the acquisition process," said Anil Agarwal,Chairman of Sterlite. Terry Bonds,Chariman of the Asarco Union Negotiating Committee, said:"We believe that Sterlite with its strong experience in the copper business, will strengthen Asarco's operations for the long term benefit of all stakeholders,including its employees." In another development advancing Sterlite's proposed acquisition, the bankruptcy judge presiding over Asarco's chapter 11 case approved the bid protection contemplated by the purchase and sale agreement with Asarco,which includes, among other things , a break-up fee of $52 million payable to Sterlite under certain circumstances. Asarco,which owns and operates copper mines,smelters,refineries and other related assets, filed for chapter 11 bankruptcy protection in 2001 before the US bankruptcy court for the southern district of Texas.The proposed sale of assets to Sterlite is part of a plan to bring the bankruptcy case to a close. By Ms.Bobby Aanand, Metropolitan Jury.

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