Why would anyone flag this post as a violation is beyond me. Xstrata is a huge potential suitor for us and how they behave and how they grow by acquisition is very important for Noront shareholder's to understand. Those that fail to see this connection are very shortsighted. The other option is that someone does not want retail shareholders of Noront to hear about 10B dollars in cash offers made by one of the many companies that have been circling around Noront. This is actually the most relevent and important post all day today IMHO. The stock market may be bearish and liquidity an issue for many but as confirmed in this NR, it is not an issue for mining companies looking to buy assets. That is very important to realize. Most of us here are not here to sell to the stockmarket but to acquire, over time a larger amount of shares just waiting for our offer to come!!

Cheers,

Glorieux

Lonmin rejects Xstrata bid

Lonmin Plc has rejected an unsolicited takeover bid worth US$10 billion from mining group Xstrata, saying the £33 per share cash offer undervalued the company.
"This is an opportunistic and entirely unwelcome attempt to acquire Lonmin at a price which undervalues its unique assets," the world`s third-biggest platinum producer said in a statement.
Xstrata unveiled the takeover bid for the world`s third-biggest platinum producer to diversify its business from industrial metals such as copper.
Lonmin shares soared 51% to a high of £35 on Wednesday, slightly over Xstrata`s planned offer of £33 a share.
Anglo-Swiss Xstrata`s swoop is part of a wave of consolidation in the metals sector amid booming demand from China that has sent prices soaring over the past few years.
Xstrata said it planned to buy more Lonmin shares in the market on Wednesday, adding to its 8% stake it bought from several major shareholders after the close on Tuesday.
"We`ll stand in the market today with a firm offer to shareholders and those who wish to accept we`ll take their shares," chief executive Mick Davis said.
Mr Davis said he rang Lonmin management on Tuesday night, who said they would assess the offer. Lonmin was not immediately available for comment on Wednesday morning.
Analyst Asa Bridle of Seymour Pierce advised shareholders to sell Lonmin, which has struggled to meet production targets.
"Given our long-term negative stance towards Lonmin, which has been fuelled by our concerns at its operation performance, we advise investors to sell into the strength created by this offer."
Xstrata would fund the bulk of its $10 billion offer through bank debt and Mr Davis said he expected little problem in sealing the financing considering the number of messages from bankers he had already received on Wednesday morning.
Xstrata said it had the expertise to turn around the South African mines owned by Lonmin, which has repeatedly cut its production targets due to operational problems, smelter difficulties and power shortages.
Xstrata`s most important commodities are copper, coal and nickel, but the firm entered platinum last year with a US$1 billion purchase of South Africa`s Eland Platinum.
Xstrata has grown from a small Swiss producer of steel alloys in the late 1990s to the fifth-biggest mining group by market value through a string of acquisitions.
"Today`s announcement marks the next step in our strategy to develop a significant platinum business and add further scale and diversification to our portfolio," Mr Davis said.
Lonmin has been turning robust profits, boosted by record platinum prices. But in the past few months platinum prices have fallen by a third to US$1,562/oz from a record US$2,290 in March, dragging Lonmin shares down with them.
Xstrata also posted a 2% rise in first-half attributable net profit of US$2.83 billion, higher than a average forecast of analysts polled by the firm of US$2.65 billion.
A ramp-up in production of copper and coal in the second half plus strong commodity prices was expected to lead to a buoyant second six months of the year.