Mitsui waiting to wreck Xstrata's bid

JAPANESE trading house Mitsui is preparing to gatecrash Xstrata's bid for Australian miner WMC Resources.

The company, which holds stakes in the Australian iron ore operations of Rio Tinto and BHP Billiton, has organised a visit to WMC's key asset, the Olympic Dam copper-uranium operation in South Australia, according to the Australian Financial Review.

Despite persistent rumours that rivals such as BHP Billiton, Rio and Anglo American are poised to join the fray, they so far have not declared their hands.

News of a possible bid by Mitsui comes as expectations grow that London-listed Xstrata will be forced to raise its offer for WMC. Xstrata shareholders last week backed its A$6.35-a-share bid for WMC in a deal worth A$7.4bn (£2.9bn) but the shares are now trading at around A$7.20.

Xstrata must on Thursday give notice to the Australian Stock Exchange of the status of its bid and whether it plans to extend that beyond 28 January.

It has faced a wave of hostility in Australia over the bid with some politicians from the governing Liberal Party saying the Olympic Dam, which include more than a third of the world's uranium, is a strategic asset which should stay in Australian hands.

WMC has also lodged a formal complaint about Xstrata, saying it and independent valuer Grant Samuel had issued misleading claims about the Aussie firm.