Platinum giant Lonmin has warned hostile Anglo-Swiss mining suitor Xstrata to formalise its £5.6 billion offer for the firm or discontinue its interest in a takeover.

The world's third largest platinum producer has invoked the UK's 'put up or shut up' code, meaning that Xstrata now has an October 2nd deadline to make an official offer or it will have to wait six months before conducting further negotiations.

Xstrata believes that it can improve Lonmin's production - which is expected to be 725,000 oz for 2008 - to the levels recorded between 2003 and 2006, where output was closer to 900,000 oz.

According the Times, the firm is waiting for bank financing before it launches a formal bid, although a number of shareholders such as Standard Life have already accepted offers - taking it to 13 per cent of its final target.



Source:

Put up or shut up, Lonmin tells Xstrata (03/09/08)
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