Swiss firm counters a friendly offer for Canadian mining group Falconbridge, in which it already holds a 19pc stake
Swiss mining group Xstrata launched a hostile takeover bid for Canadian mining group Falconbridge yesterday, countering a friendly offer from Inco of Canada and highlighting consolidation moves in the Canadian mines and metals industry.
Xstrata, aiming to create the fifth-biggest mining group in the world, said its offer was worth C$52.50 per share, valuing Falconbridge at C$20 billion ($139 billion).
The Swiss-based group said that it already owned 19.8 per cent of Falconbridge and would pay C$16.1 billion in cash to buy the rest of the shares.
Falconbridge, which employs 14,500 people worldwide in its predominantly copper and nickel businesses, has already been targeted by Inco, which raised its offer of cash and shares to US$17.6 billion on Saturday.
In a sign of further attempts to consolidate the Canadian industry, Inco has also become a target for Canada's Teck Cominco, the world's biggest zinc producer.