Diversified global mining company Xstrata may be mulling acquiring platinum junior Eland Platinum, according to recent reports.

Citing "a source close to the deal" South African newspaper Business Report claims that the two firms are currently in negotiations.

Meanwhile, an analyst cited in the report speculated that any deal would likely involve Xstrata paying R8.5 billion and a premium in cash.

Speculation about a possible tie-up has been fuelled further by comments made by Xstrata Alloys chief executive Peet Nienaber who has previously stated that the company regards platinum as a "very positive" commodity.

Mr Nienaber also intimated that Xstrata, which already has a stake in a R1.35 billion platinum joint venture with Ango Platinum at the Motolo mine, was keen to build more platinum mines.

Since rumours of the proposed deal have begun circulating, shares in JSE-listed Eland were up 4.28 per cent on Monday.

Thus far, however, representatives from both companies have refused to comment on market rumours.

Shares in Eland, which closed at R117,90 a share on Friday, had retreated slightly to R121,50 a share by 9:09, up 3,05 per cent for the day.

Eland recently announced that it is to develop its interests at the Elandsfontein mine with a view to increasing output to one million ounces annually.

Source:
Xstrata named as bidder for Eland
11/06/07
http://www.busrep.co.za/index.php?fArticleId=3877171&fSectionId=552&fSetId=662


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