Anglo-Swiss miner Xstrata PLC Wednesday unveiled a $16.1-billion bid for Canada's Falconbridge, Dow Jones Newswires reported.
Putting an end to months of speculation, Xstrata proposes to pay $52.50 a share for the 80.2 per cent of Falconbridge it doesn't already own, Dow Jones said.
The bid values Falconbridge at $18.1-billion.
Putting the two companies together would create the world's fifth largest diversified mining company, Xstrata said, with leading positions in copper, nickel, thermal and metallurgical coal.
Xstrata's move is the latest salvo in a battle that pits it against Canadian nickel miner Inco Ltd., which has a $19-billion cash and stock offer on the table to acquire Falconbridge.
Inco is itself the subject of a $17.8-billion cash and stock hostile bid from Canadian peer Teck Cominco.
Xstrata is offering a 12.3 per cent premium to Inco's current offer for Falconbridge, based on the May 5 closing price of Inco's shares, Xstrata said.
