Norilsk bids again for LionOre
A Russian company has upped its offer for LionOre Mining International Ltd., the fourth round in a bidding warthat has pushedthe Toronto company’svalue up by more than $2 billion in two months.
OJSC MMC Norilsk Nickel of Russia said Wednesday that it was offering $27.50 cash for each LionOre share, topping the previous $25 bid by Xstrata of Switzerland. LionOre three-month trading
Norilsk valued its bid at $6.8 billion, compared with Xstrata’s first bid, on March 26, valued at $4.6 billion.
Norilsk’s bid on Wednesday was “discounted” to take into account the “excessive” $305-million fee that LionOre must pay to Xstrata if it accepts another bid, Norilsk’s general director, Denis Morozov, said in a release.
“This break fee has compromised a fair bidding process, and value, which should have been delivered to LionOre shareholders, instead may go to Xstrata,” he said.
Norilsk upped its bid because owning LionOre will give it greater scale in key commodities, more geographic diversification and potential growth projects, Morozov said.
Norilsk said it’s theworld’s largest producer of nickel and palladium and among the topproducers of platinum and copper.
Xstrata started the contestfor LionOre on March 26, bidding $18.50 a share. Norilsk’s first bid, of $21.50 a share, was made May 3.
LionOreproduces nickel in Western Australia, South Africa and Botswana, and has agold mine in Western Australia.