Even so, Xstrata extended the closing date for its own offer to midnight on June 15.
The Norilsk bid had valued LionOre at US$6.43 billion (or around P38 billion) as against the US$5.86 billion (or around P36.3 billion) Xstrata offer.
This is probably a sensible move by Xstrata given the feeling in Moscow reported earlier by Mineweb that for internal political reasons, Norilsk seemed likely to pay whatever it takes to gain LionOre.
Even so, Xstrata does not come out of the deal empty-handed as it had negotiated a break fee (a fee paid by a target company to bidders during an acquisition if the pending deal is terminated) worth some US$288 million (about P1.78 billion) with LionOre in case of its bid being superseded by a superior offer leading to it not to exercise its right to match this.
Unless another bidder comes into the fray, which seems unlikely at this stage, it looks as if Norilsk will definitely absorb LionOre into its suite of operations.
It may also mean a fall in the price of LionOre shares, which had been trading a little above the Norilsk offer value, in the anticipation of another bid. (Mineweb)
