Global commodity prices are booming, of course, but are also volatile. Platinum prices, for example, fell almost 30% since March, which is one reason the shares of U.K. platinum miner Lonmin plc's shares are down nearly 40% in the seven months to Aug. 5.
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That proved a perfect setup for famously acquisitive Swiss miner Xstrata plc to launch a £5 billion ($9.8 billion) raid on Lonmin Wednesday, snapping up an 8% stake and warning it expected to buy more shares during the day. Xstrata is offering 3,300 pence per Lonmin share, a 42% premium to its British target¹s most recent closing price of 2,319 pence. Lonmin, which operates mainly in South Africa, predictably dismissed the offer as "opportunistic and entirely unwelcome." - Barbara Rudolph
TheDeal.com: Xstrata sets sights on Lonmin (subscription required)
