Russian metals giant Norilsk Nickel is also bidding for all of the issued and outstanding shares of Canadian gold and nickel producer LionOre.
Norilsk Nickel, the leading mining and metals company in Russia and one of the world's largest producers of nickel, palladium, platinum and copper, offered in early May to buy all of LionOre's common stock, paying 21.50 Canadian dollars (US$19.42) in cash per share.
The offer represented a premium of about 16.2% over a rival bid by Xstrata, a global diversified mining group with headquarters in Switzerland.
LionOre said on May 8 that a 5.3 billion Canadian dollar (US$4.8 billion) cash offer for all of its issued and outstanding common shares by Norilsk Nickel was superior to Xstrata's bid, but that the Swiss company could exercise its matching right and propose a higher offer.
Xstrata adjusted its offer two weeks ago, offering 25 Canadian dollars (US$23) per share, an increase of 35.1% over its original offer and a premium of about 16% over the price of 21.50 Canadian dollars (US$19.42) per share offered by Norilsk Nickel.
In turn, the Russian metals giant raised on May 23 its bid for LionOre to 27.5 Canadian dollars (US$25.32) per share, which represented an increase of 6 Canadian dollars ($5.52) per share over Norilsk Nickel's previous bid of 21.50 Canadian dollars (US$19.42) in cash for each LionOre share, and a premium of 10% over the 25 Canadian dollar (US$23) price offered by Xstrata Plc. in its increased rival bid for LionOre.
The LionOre board of directors again recognized Norilsk Nickel's new offer as superior and gave Xstrata an opportunity to raise its bid by June 1.
The Russian metals giant is seeking to acquire LionOre to boost metal output, expand the geography of its operations and implement "exciting projects," the company earlier said.
LionOre is a global nickel and gold producer with operations in Australia, Botswana and South Africa. In 2006, LionOre produced 34,094 metric tons of payable nickel and 155.203 ounces of gold.
