Xstrata launches six-billion-euro bid for fellow miner Lonmin

0 Comments | AFP, August, 2008

ZUG, Switzerland (AFP) — Swiss mining giant Xstrata has sought to expand its global reach with a 6.0-billion-euro bid for British platinum producer Lonmin, termed "opportunistic and unwelcome" by its target.

Xstrata, which has interests in copper, coal, ferrochrome, nickel, zinc, gold, cobalt, lead and silver and is listed on both the London and Swiss stock exchanges, offered 33 pounds (42 euros, 65 dollars) a share.

That amounted to 42 percent more than its closing price of 23.19 pounds on the London stock exchange on Tuesday, said a statement from Xstrata.

The offer values the company at about five billion pounds (6.3 billion euros, 9.8 billion dollars).

Xstrata already held an 8.03 percent stake in Lonmin, and over the course of the day, the...