australias-jubilee-mines-sells-to-xstrata

Australia's Jubilee Mines sells to Xstrata

Xstrata offers $2.8 billion to take over the Australian nickel producer after securing 17.5% of the company's shares.
Global mining group Xstrata has launched a A$3.1 billion $2.8 billion takeover bid for Australian nickel producer Jubilee Mines.

Xstrata is offering A$23 per share which represents a premium of 36% to the 30-day volume weighted average price of Jubilee, a 35% premium to the closing price on October 26 and a 25% premium to the stock's all-time high. But after the deal with Xstrata was announced, enthusiastic Jubilee shareholders pushed the share price up by 40% to close at A$23.95 on October 29.

Market commentators say Jubilee shareholders are hopeful that a higher, competing bid for the company will be tabled.

The takeover has been unanimously recommended by the Jubilee board. Xstrata has already...
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