Swiss-based mining house Xstrata would buy up to 5 percent of Canada's Falconbridge as it battled to secure its hostile bid for the nickel and copper producer, Xstrata said yesterday.
The company, which faces a rival offer from Inco, planned to buy Falconbridge stock from today until the expiry of its offer. On July 19 Xstrata raised its offer for the 80 percent of Falconbridge it does not own to C$62.50 (R383.50) a share in cash from C$59. Falconbridge has agreed to a cash and stock offer from Inco, which was to expire at midnight last night, Pacific time.
Although Falconbridge's board is backing Inco's deal, many analysts peg Xstrata's bid as the winner as it is all cash, simpler and not subject to market fluctuations. Based on Inco's closing share price on Wednesday, its offer values Falconbridge at C$64.74 a share. - Reuters, London