Xstrata turns up heat in WMC bid

MINING giant Xstrata lit the fuse for yet another bloody takeover fight in the mining sector today by going directly to shareholders of Australian target WMC with a £3.1bn bid.

A fortnight after its initial approach was snubbed by WMC's board, Xstrata said the group's investors deserved the opportunity to consider its offer directly.

The bid price is unchanged at A$6.35 a share - 11% below WMC's closing price of A$7.08 in Sydney today - but Xstrata said it was still a significant premium to the group's real value.

Chief executive Mick Davis added: 'We consider that our offer provides-immediate, certain value in the form of cash to WMC shareholders that cannot be matched for WMC on a standalone basis.'

WMC is Australia's second-biggest mining group and owns the thirdlargest copper deposit in the world.

Its chief executive, Andrew Michelmore, said he was still waiting for a 'material improvementî in the offer price.

Davis said that, whatever the outcome, he was keen to avoid the mudslinging that has dominated the bid battle between Harmony and Gold Fields.