Sphere Backs $500M Xstrata Bid Over Chinese Offer

Law360, New York (November 5, 2010, 3:57 PM EDT) -- Australian mining company Sphere Minerals Ltd. told shareholders Friday they should accept a roughly $500 million buyout offer from global mining group Xstrata PLC and reject a competing offer by China's Sin-Tang Development Pte Ltd.

The Sin-Tang offer — which would fund a key iron ore project by raising $130 million in equity — valued a portion of West Perth, Australia-based Sphere’s operations at $3.30 per share, higher than Xstrata’s per-share price, according to the seller.

But that deal would only cover Sphere’s Askaf iron ore...
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