Sterlite closing in on copper producer Asarco - again

India’s Sterlite Industries (STRL.BO: Quote) is close to a new deal to buy U.S....

India’s Sterlite Industries (STRL.BO: Quote) is close to a new deal to buy U.S. copper miner Asarco LLC from bankruptcy, according to a person familiar with the matter.The deal could be signed within a matter of weeks, but would be less than the $2.6 billion Sterlite offered for Asarco last year, the person said.Other parties were also continuing to make proposals to buy Asarco, the person said.The deal would allow Asarco, which owns three copper mines in Arizona, to exit bankruptcy after seeking court protection from creditors amid a slew of environmental lawsuits in 2005.In October, Sterlite backed out of an earlier $2.6 billion deal to buy the company, saying it would need a substantial reduction in price after a drop in the copper markets.That also upended a competing offer of $2.7 billion, plus full repayment for creditors, from Grupo Mexico (GMEXICOB.MX: Quote), Asarco’s parent. Grupo Mexico had acquired Asarco in 1999, but lacks board control of the company due to the bankruptcy and has been fighting to get it back.Grupo Mexico said last year that any future deal for Asarco would likely repay only fractions of its creditors’ claims."Our position is to wait and see if it is true because there is nothing signed and we won’t know anything until they present something to the judge," Juan Rebolledo, vice president of international relations for Grupo Mexico said on Thursday.Sterlite, a unit of London-listed Vedanta Resources Plc (VED.L: Quote), and Grupo Mexico have been in negotiations over the deal with Asarco for months, both inside and outside of a court-ordered mediation.Last month, Asarco was also considering a potential joint venture with Swiss commodities firm Glencore International AG [GLEN.UL].Under the new deal, Sterlite would have to deposit an amount greater than the $50 million deposit made as part of its original offer, the source said.After Sterlite said it could not close the deal in October, Asarco drew down the $50 million letter of credit that was posted by Sterlite when it signed the original deal in May. (Reporting by Emily Chasan, additional reporting by Mica Rosenberg in Mexico City, editing by Leslie Gevirtz)