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XStrata secures control of Sphere Minerals

XStrata Plc was able to secure a controlling stake equivalent to 51.12 percent in Sphere Minerals, while remaining rival China-backed Sin-Tang continues to tighten its grip in its shares in the company top up its holding.

After more than two months and revisions to its $514 million offer, Xstrata today said it has secured 51.12 per cent, which is likely to result in an automatic two-week extension as its bid becomes unconditional, the company said in a statement posted on its website.

The mining company's shareholdings originally at 18.99 percent, got a boost from the additional shares equivalent to 32.13 percent secured from Acorn Capital and Genesis, who agreed to a $3-a-share.

Xstrata said it would let its offer lapse if it did not secure more than 50 per cent of Sphere by 7pm AEDT tomorrow.

Sin-Tang, which has offered a rival proposal to match Xstrata has also increased its stake to 14.67 percent after snapping up 2 million shares on-market yesterday. It said it would not sell its shares to Xstrata.

Although based in Perth, Sphere is a West African iron ore producer with three large-scale projects in Mauritania.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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