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PHOENIX -- Some state legislators and local officials are urging a federal bankruptcy court to reject efforts by Grupo Mexico to reacquire Tucson-based Asarco LLC.

At a press conference today, Reps. Pete Rios, D-Dudleyville, and Barbara McGuire, D-Kearny, said the best interests of the state would be served by having India-based Sterlite Industries own the company.

They were joined by supervisors from Gila and Pinal counties as well as the mayor of Hayden, all of whom complained about the practices of Asarco under Grupo Mexico's ownership, including failing to pay its taxes.

Instead they threw their support behind the acquisition bid of Sterlite Industries Ltd., a subsidiary of India-based Vedanta Resources PLC.

Rios acknowledged that Vedanta is a relative unknown, with the effort to obtain Asarco its first U.S. venture. But Rios said he does know something about Grupo Mexico, saying that company's operation and its failure to pay taxes forced him to introduce legislation more than a decade ago to restructure the school district's debt.

"I clearly know Grupo Mexico,'' he said. "I don't want them back in the community. "I would rather take my chances with an unknown commodity.''

The Sterlite offer to take Asarco out of bankruptcy also has gained the backing of the United Steelworkers Union.

Manny Armenta, the union's sub-district director, said Sterlite officials have already agreed to a contract running through 2013, with a promise to renegotiate by the end of 2010.

The position of the state and local officials puts them at odds with U.S. Reps. Gabrielle Giffords and Raul Grijalva, both Tucson Democrats.

In a letter last month to the Department of Justice, the pair said they believe that Vedanta does not have a good record "as a responsible employer and environmental steward.''

C.V. Krishnan, Vedanta's director of business development, said one incident cited by the pair – contamination of water supplies near mines – was the result of inheriting a 35-year-old plant from another company. Krishnan said an allegation of improper disposal of toxic was "clearly misinformation'' and denied any knowledge of a claim of failing to provide protective gear to mine worker.

Representatives of Grupo Mexico did not immediately return a call seeking comment.