australias-jubilee-mines-sells-to-xstrata

Australia's Jubilee Mines sells to Xstrata

Xstrata offers $2.8 billion to take over the Australian nickel producer after securing 17.5% of the company's shares.

By Sameera Anand

October 29, 2007

Global mining group Xstrata has launched a A$3.1 billion $2.8 billion takeover bid for Australian nickel producer Jubilee Mines.

Xstrata is offering A$23 per share which represents a premium of 36% to the 30-day volume weighted average price of Jubilee, a 35% premium to the closing price on October 26 and a 25% premium to the stock's all-time high. But after the deal with Xstrata was announced, enthusiastic Jubilee shareholders pushed the share price up by 40% to close at A$23.95 on October 29.

Market commentators say Jubilee shareholders are hopeful that a higher, competing bid for the company will be tabled.

The takeover has been unanimously recommended by the Jubilee board. Xstrata has already...

FinanceAsia has updated its subscription model.

Registered readers now have the opportunity to read 5 articles from our award-winning website for free.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team subscription (2-5 users), or office-wide licences.

To help you and your colleagues access our proprietary content, please contact us at [email protected], or +(852) 2122 5222