Lonmin has rejected a $10 billion takeover bid from hostile suitor Xstrata, it has been confirmed today (September 2nd).

The world's third-biggest platinum producer dismissed the bid as being too low but has now called for talks to be arranged to discuss potential synergies.

Xstrata has already bought up a stake of 10.7 per cent in the firm and made the offer - which equates to £33 per share in sterling - on August 6th.

However, Lonmin has released a statement claiming that it is considering alternatives, although Chairman John Craven refused to be drawn on whether any rival bids have been provisionally submitted.

Mr Craven explained that the Xstrata bid fell below the true valuation of the firm as it failed to incorporate the fact that combining the two companies would result in decreased costs.

He said: "In the case of a combination between Lonmin and Xstrata we think there could be quite significant synergies.

"If Xstrata does come forward with an offer which is no longer conditional and one in a range where we might be getting somewhere close to where a deal could get done, I would hope they would find time in their busy schedules to meet."


Source:
Lonmin seeks talks with hostile suitor Xstrata
http://www.reuters.com/article/innovationNews/idUSL263247020080902?sp=true