Lonmin confirms rumours

Platinum producer Lonmin (LNMIF-O, LMI-L) has confirmed that it has been in “preliminary discussions” with a possible buyer, but did not identify the other party.

A number of major companies have been mentioned as possible bidders for Lonmin. A successful bidder would have to swallow a market capitalization around 3.8 billion at current prices. Lonmin also has long-term debt of US$216 million in convertible bonds.

Swiss-based Xstrata (XSRAF-O, XTA-L) has been widely touted as a possible buyer.