Xstrata's offer for Eland Platinum has been endorsed by the platinum junior's board, after Merrill Lynch advised it that the offer was "fair and reasonable".

Eland Platinum's management has now advised shareholders to vote in favour of the deal on October 5th.

News of progress in negotiations comes after Xstrata, which is the fifth-largest diversified metals and mining company, last month announced it intended to make a friendly offer for Eland's entire issued share capital.

The offer to Eland Platinum's shareholders stands at R105 per share, which equates to a total outlay of R7.5 billion.

Peet Nienabeer, Chief Executive of Xstrata's Alloys division, said: "Xstrata's offer for Eland marks the fulfilment of our next step in our strategy."

Prior to Xstrata's entry into the platinum sector through a joint venture with Anglo Platinum in 1995, the prime focus of its business had been alloys, coal, copper, nickel and zinc.

Through acquiring Eland, Xstrata would hold a 65 per cent stake in the Elandsfontein platinum operation, and would also have the option of acquiring a further nine per cent shareholding.

Source:

Eland board recommends Xstrata offer
http://www.miningweekly.co.za/article.php?a_id=116684

Eland board supports Xstrata offer
http://business.iafrica.com/news/548080.htm

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