U.S. News

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.