WMC spurns opening offer from Xstrata

Swiss-based resources group Xstrata offered $6.35 a share for WMC Resources, in a bid worth $7.4 billion. Xstrata had considered making a the offer as a scheme of arrangement but changed this a conventional cash bid, announcing it earlier than otherwise planned following leaks to the media. Speculators believe Xstrata will have to pay more, or that a rival bid will emerge, with the price of Xstrata’s shares bid up to $6.97. The market is now looking towards BHP Billiton, Rio Tinto, Anglo American and possibly others to take the fight to Xstrata for control of WMC.