Xstrata Raises Offer for LionOre to Repel Norilsk |
| Bloomberg - May 15, 2007 |
Xstrata Plc increased its offer for LionOre Mining International Ltd. by 35 percent to C$6.2 billion ($5.6 billion) to beat a counterproposal from OAO GMK Norilsk Nickel and become the world's third-largest nickel producer.
Xstrata bid C$25 a share, up from C$18.50, the Zug, Switzerland-based company said today in a statement. The offer is 16 percent higher than the C$21.50 Norilsk made on May 3. Shares of LionOre, which has mines in Australia, South Africa and Botswana, traded at the equivalent of C$24.72 in London.
The contest for Toronto-based LionOre is the second time in a year that Xstrata Chief Executive Officer Mick Davis has tried to fight off rivals to make nickel-mining acquisitions. He raised an all-cash offer to $18 billion last year to acquire Canada's Falconbridge Ltd. Nickel prices have more than doubled in the past year on rising demand from steelmakers.
Read Full Article from Bloomberg
- Posted: 2007-05-15 09:56:57
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