Lonmin Rejects Xstrata's US$10bn Bid

August 2008 | M&A News Alert

Anglo-Swiss miner Xstrata made an unsolicited US$10bn bid for the world's third-largest platinum producer, Lonmin, on August 6. Xstrata bid GBP33.00 (US$64.50) per share, a premium of 42% on Lonmin's closing share price of GBP23.19 (US$45.32) on August 5. London-listed, but South Africa-focussed, Lonmin rejected the bid stating that it undervalued the firm - 'this is an opportunistic and entirely unwelcome attempt to acquire Lonmin at a price which undervalues its unique assets.'

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