Xstrata ups ante for Sphere Minerals by 20 per cent

Diversified Swiss mining group Xstrata Plc has boosted its bid to acquire West African-focused iron ore explorer Sphere Minerals Limited (Sphere) by 20 per cent over its previous offer, and stated that the revised offer is final and will not be increased further.

The new offer from Sidero Pty Limited, a wholly-owned Xstrata subsidiary, is A$3.00 per share of Sphere, valuing the Perth-based iron ore company at approximately A$514 million.

Xstrata Coal chief executive Peter Freyberg said, ''We believe our cash offer of $3.00 per Sphere Share is very attractive to Sphere Shareholders and demonstrates our willingness to expedite the completion of our Offer.''

''Xstrata's offer is the only opportunity for shareholders to realise certain cash value for their investment in Sphere in the short term at a substantial premium of 94 per cent to the pre-offer price of $1.55,'' Freyberg highlighted.

The company said that all Sphere shareholders who have already accepted the offer would also be entitled to receive the increased offer price, in case the offer price becomes unconditional.

Further to the news, shares in Sphere soared 19 per cent to end at $2.94 on Thursday.