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Johannesburg- Global diversified mining group Xstrata has instructed advisers JP Morgan and Deutsche Bank to study a potential takeover of South African platinum miner Lonmin , The Observer reported on Sunday.
Lonmin's shares began moving on rumours of the potential bid on Friday and the shares ended the day 8.09% or R14.74 higher at R197 on the JSE.
The shares moved higher for a second day on Monday, adding 4.04% or R7.96 to trade at R204.96 by 13:54.
Xstrata, which made a hostile offer for Lonmin in 2008, built a 25% stake in the company before withdrawing the bid after the global economy took a turn for the worse and access to financial markets soured.
Earlier this year the group was given the cold shoulder by Anglo American after proposing a merger of equals.
But its interest in a launching a fresh bid for Lonmin suggests it has not given up its dream of becoming a significant platinum player - with or without Anglo's Anglo Platinum.
Under UK Takeover Panel rules Xstrata can only make a new bid for Lonmin after October 2.
The Observer suggested that the fresh bid could be a mix of shares and cash.
It said a move on Lonmin was also likely to force Xstrata to abandon its ambition to merge with Anglo American.
- I-Net Bridge