Sterlite won't complete $2.6 bn buyout: Asarco

TUCSON, ARIZONA: Copper miner Asarco LLC says its $2.6 billion sale to India-based Sterlite Industries Ltd. is in doubt after Sterlite said it was backing out of the deal.

Lawyers for Tucson-based Asarco informed a federal bankruptcy judge in Texas on Tuesday that Sterlite ``cannot and will not'' close the sale unless Asarco agrees to a price reduction.

Asarco says Sterlite has not alleged that the purchase agreement it signed in May is unenforceable or that it lacks cash to close the deal. Asarco president and chief operating officer Joseph Lapinsky says the company is reserving it rights under the agreement.

Asarco says Sterlite cited weakening financial markets and falling copper prices for its decision to conserve its cash.