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Unable to gain support from Anglo American PLC's management, Xstrata PLC dropped its proposed 50-50 merger with the rival mining company. Article discusses how tightening credit is slowing down consolidation within the mining sector, and Xstrata's strategy for growth under chief executive Mick Davis.

Affected by a slump in metal prices, Xstrata PLC reports a 77% first-half net profit drop to $643 million. Adjusted net profit fell 68% to $909 million. In June, Xstrata proposed a no-premium merger of equals with Anglo American PLC, but Anglo rejected the offer.

Calling the terms unacceptable, mining firm Anglo American PLC rejected a merger offer from rival Xstrata PLC that would have created the world's third largest mining company with a value of $67 billion. Xstrata is expected to present another offer but is unable to pay a premium on Anglo's shares because of its limited capacity to take on more debt. Anglo's shares rose 4.6% on Monday to 16.98 pounds sterling, while Xstrata's fell 6.7% to 6.35 pounds.

In a move that could slash $1 billion in annual costs, mining company Xstrata PLC proposed a merger with rival Anglo American PLC. The resulting entity would be equally owned by both companies' shareholders, but Xstrata's management would be more in control of the company. Potential obstacles to the deal include Xstrata's failure to offer a premium for Anglo's shares, Xstrata's proposal to take the lead in managing the company, and possible opposition from the government of South Africa, where Anglo has operations.

Mining giant Xstrata PLC has dropped its $10-billion acquisition offer for platinum producer Lonmin PLC opting instead to increase its stake in Lonmin to 24.9%, the maximum allowed before requiring approval from European antitrust regulators. Xstrata, which already owned 10.7% of Lonmin, bought an additional 22.2 million of Lonmin stock for $35.18 per share.

Citing it misrepresents its value, platinum producer Lonmin PLC once again rejected mining giant Xstrata PLC's hostile bid for 5.6 billion pounds sterling but says it will consider a higher offer. Analysts agree that Lonmin's long-term revenue prospects are promising as platinum prices continue to increase, but the short- and medium-term outlook is less good as platinum demand drops because of economic slowdown in the U.S. and Europe.

Swiss mining giant Xstrata PLC made an unsolicited $10 billion cash offer for platinum producer Lonmin PLC which immediately rejected the offer as too low. After Lonmin's initial rejection, Xstrata increased its stake in the company by 2.65% to 10.68%. Negotiations are expected to continue. Article discusses consolidation trends in the mining sector.

Full-year 2007 net profit for Swiss mining firm Xstrata PLC increased by 13% to $5.54 bil, boosted by acquisitions that include Canada's Falconbridge Ltd. and Eland Platinum Holdings Ltd. Revenue increased 12% to reach $28.54 bil. Talks continue with Brazilian firm Companhia Vale do Rio Doce S.A.

Brazil's politicians are concerned that the planned acquisition of Swiss mining firm Xstrata PLC by Brazilian firm Companhia Vale do Rio Doce S.A. would divert a significant level of Vale's attention and financial resources away from the nation. Vale officials, however, stated that overseas expansion will help it remain competitive. The proposed acquisition is valued at up to $90 bil.

Brazilian mining firm Companhia Vale do Rio Doce is negotiating with Xstrata PLC to buy the Swiss firm in a deal worth up to $90 bil. The sale depends on Vale raising the cash required.

Swiss mining firm Xstrata PLC has launched an A$960 mil rival bid for coal company Resource Pacific Holdings Ltd., trumping an A$775 mil offer made by Australia's New Hope Corporation Ltd. The Xstrata offer represents an 85% premium to Resource Pacific's average price.

Russian mining company Norilsk Nickel increased its offer for Canadian firm LionOre Mining International Ltd. to $6.28 bil, or $25.32 a share. The bid is a 28% increase from its initial bid, and 10% higher than Xstrata PLC's offer.

U.K.-based Xstrata PLC increased its bid for Canada's LionOre Mining International Ltd. to $5.6 bil in an attempt to beat rival bidding by Russia's Norilsk Nickel. The new offer represents a premium of 16% per share.

Feb 02, 2005 (The Australian - ABIX via COMTEX) Swiss mining company, Xstrata, has not made a reasonable bid for WMC Resources. The Australian target's uranium resources are of global [...]

Jan 24, 2005 (The Australian Financial Review - ABIX via COMTEX) Xstrata CEO Mick Davis says the Swiss miner is being unfairly maligned in Australia. He was referring to outspoken [...]

MIM Holdings Ltd.'s share value rose by 1.9% as speculation swirled about a possible takeover bid for the company by Xstrata PLC. Speculation has it that Xstrata will make a bid of over 3.6 billion Australian dollars (2 billion euros) for MIM.

Xstrata PLC is engaged in talks for a possible acquisition of MIM Holdings Ltd. Xstrata might launch an acquisition bid valued at 3 billion Australian dollars (1.68 billion euros) for MIM.