Enter multiple symbols separated by commas

Xstrata Makes $4 Billion Cash Bid for LionOre

Mining company Xstrata said Monday it has made a 4.6 billion Canadian dollar ($4 billion; 3 billion euros) takeover bid for Canada's LionOre Mining International.

At 18.50 Canadian dollar ($15.92; 12 euros) per share, Xstrata said its offer represented a 5.8% premium over Friday's 17.49 Canadian dollar ($15.05; 11.35 euros) closing price for LionOre on the Toronto Exchange.

The bid for the Canadian nickel and gold producer comes in the form of an all-cash offer for all of LionOre's issued and outstanding shares, the Switzerland-based mining giant said.

"The combination of LionOre with Xstrata Nickel brings together two very complementary businesses and creates significant opportunity for the enlarged Xstrata Nickel business," Ian Pearce, chief executive officer of Xstrata Nickel said in a statement.

The offer is supported by LionOre, whose President and Chief Executive Officer Colin Steyn said that bid offered "clear value to shareholders, and also positions our operations and employees as part of a growing, successful global nickel producer."

Xstrata shares were up 0.97% at 26.03 British pounds ($51.02; 38.46 euros) on the London exchange Monday.

Contact U.S. News


    Get the best of CNBC in your inbox

    Please choose a subscription

    Please enter a valid email address
    To learn more about how we use your information,
    please read our Privacy Policy.

Don't Miss

U.S. Video

  • Hero miles for military members: Real estate magnate's plea

    Chairman of the Fisher House Foundation, Ken Fisher, discusses the Hero Miles program with CNBC's Dina Gusovsky. During Military Appreciation Month, Fisher is asking every traveler to donate 1,000 of their miles to replenish the Hero Miles programs that is in danger of running out.

  • Cramer shuts down this market's haters

    "Mad Money" host Jim Cramer on why this market can't stop, won't stop.

  • From the battlefield to the boardroom

    Your Grateful Nation is dedicated to helping Special Forces veterans enter the corporate world and Knot Standard provides complimentary suits to vets. Mad Money's Jim Cramer spoke with Rob Clapper, Your Grateful executive director; John Ballay, Knot Standard co-founder and president; Tej Gill, retired U.S. Navy Seal; and Darren McB, active duty U.S. Navy Seal.