Swiss miner Xstrata plc lifted its stake Friday in hostile bid target miner Indophil Resources NL of Melbourne, Australia, to just under 20%, frustrating an agreed-to A$503 million ($419 million) offer from management backed by Crosby Capital Ltd.
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Zug, Switzerland-based Xstrata bought a 17.83% stake in Indophil from Lion Selection Ltd., which recently fought off a hostile offer from Indophil. Lion, also of Melbourne, sold the stock for A$1.17 per share, or A$82 million.
The additional stake means Xstrata could block the Crosby offer unless the consortium lowers a 90% acceptance threshold. Indophil shares had slumped 36%, to A$0.77, by the close of Friday, well under Crosby's A$1.28 per-share bid. - Laura Board
See TheDeal.com: Xstrata frustrates Indophil buyout (see full story - subscription required)
