Mikhail Prokhorov and Vladimir Potanin, on the photo, own roughly 54 percent in GMK Norilsk Nickel.
Photo: Dmitry Dukhanin
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Norilsk Nickel Offers $6.29bn for LionOre
GMK Norilsk Nickel apparently doesn’t intend to yield to Swiss Xstrata in battle for the assets of Canadian LionOre. Norilsk Nickel stepped up the offer to $6.29 billion (CAD6.82 billion) in an effort to outbid the competitor.
Norilsk Nickel offers $25.35 (CAD27.5) for each stock of LionOre, while Xstrata said it would give just $22.5 (CAD25). So, the holders of Canadian nickel producer will generate roughly $571.53 million ($620 million) in addition if they accept Norilsk Nickel’s offer.
”When determining the amount of bid's increase, we had to take into account the additional costs related to unreasonably high sum of money due to Xstrata should the higher bid be accepted and amounting to $281.15 million (CAD305 million)," said Norilsk Nickel General Director Denis Morozov.
“These costs have disturbed healthy trading and would bring profits only to Xstrata, which, otherwise, could have gone to holders of LionOre,” Morozov specified.
Norilsk Nickel joined the battle for LionOre on May 3, having offered $4.7 billion for it. The bid of Xstrata stood at roughly $4 billion, but the company hiked it by 35.1 percent past week to outbid Norilsk Nickel by 16.3 percent.
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