NORTHERN SUN MINING CORP LBEFF

Inco sees 'unprecedented' 2nd half due to nic

[garpike]

Inco sees 'unprecedented' 2nd half due to nickel Sun Jul 23, 2006 4:00 PM EDT MORE By Herbert Lash NEW YORK (Reuters) - Canadian miner Inco Ltd. (N.TO: Quote)(N.N: Quote) said on Sunday its expectations of "unprecedented" second-half results make its bid for rival Falconbridge Ltd. (FAL.TO: Quote) the superior one in a complex takeover battle. Inco, itself the target of a hostile bid by Teck Cominco Ltd. (TCKb.TO: Quote), announced a 2006 earnings outlook that trounces even the most optimistic Wall Street estimates, citing nickel prices that have risen sixfold from cyclical lows in 2001. The company said that if investors believe in nickel markets over the next five years there is no better way to ride that trend than to back Inco's offer for Falconbridge. Toronto-based Inco is competing with Swiss-based Xstrata Plc for Falconbridge. Inco's cash and stock offer, backed by Phelps Dodge Corp. (PD.N: Quote), expires July 27. U.S.-based Phelps is offering to buy both Inco and Falconbridge, but will still buy Inco if Inco does not get Falconbridge. Inco's latest forecast comes four days after the nickel giant reported record second-quarter results. Those results were reported earlier than scheduled, as Inco has been on a campaign to make its bid for Falconbridge compelling to shareholders. "We believe we're poised to see unprecedented earnings at Inco in the second half of this year," said Inco Chairman and Chief Executive Scott Hand in a statement. "The timing of Inco's offer for Falconbridge simply couldn't be better for Falconbridge shareholders," he said. Inco said it sees adjusted net earnings, which exclude certain tax benefits and currency related items, in the second half of about $1.42 billion, or $6.17 per share. Continued ... © Reuters 2006. All Rights Reserved.