One of Lonmin's biggest shareholders is expected to fight against any bid from Xstrata that would see the latter buy the platinum miner because it believes it is being undervalued.

According to reports, M&G believes that Lonmin is being undervalued by Xstrata and is ready to use its influence to fight any emerging deal.

While M&G is thought to have held onto its 15 per cent stake in the firm, a number of shareholders have already sold their shares to Xstrata.

The Daily Telegraph reported that Xstrata now owns about 11 per cent of Lonmin.

Lonmin's poor performance has led it to be the target of takeover speculation, but owners believe it to be worth more because of its prospects.

A new management team has been installed and Sir John Craven, chairman of the firm, said that Lonmin would contest an "opportunistic" move by Xstrata.

Meanwhile, it emerged that Xstrata was not focussing all of its attention on a bid for Lonmin.

Reports from Mining Weekly revealed that it was looking to add additional acquisitions to its offering in a bid to reach a production target of 2.5 million ounces.

Potential targets could include Platinum Australia and Platmin in addition to the bid for Lonmin.



Source:

Lonmin shareholder digs in heels to oppose Xstrata bid, 07/08/08
http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2008/08/08/cnlonmin108.xml

Platinum-hungry Xstrata hunting more acquisitions - analysts, 07/08/08
http://www.miningweekly.com/article.php?a_id=140225