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. Last Updated: 07/27/2016

Xstrata Raises Its Offer for LionOre

LONDON -- Xstrata, which is competing with Norilsk Nickel for LionOre Mining International, said Tuesday that it raised its offer for the Canadian nickel and gold producer in a deal that now values the business at about $5.6 billion. LionOre said it approved Xstrata's offer.

The higher price of $22.54 per share represents an increase of about 35 percent over its original offer and a premium of around 16 percent over the $22.68 per share offered by Norilsk Nickel, the company said.

"The board of directors of LionOre, after consultation with its financial and legal advisers, has unanimously approved entering into the amending agreement and recommends that LionOre shareholders tender to the increased offer," Xstrata said.

LionOre, which has operations in Australia, Botswana and South Africa, had said last week that the offer from Norilsk Nickel was a "superior proposal" to Xstrata's friendly bid. It said Tuesday that was no longer so.