Jubilee reiterates support for Xstrata takeover

Jubilee Mines NL has written to shareholders today urging them to accept a $3.1 billion takeover offer from Xstrata Nickel Australia Pty Ltd, which currently holds 40.13 per cent of Jubilee shares.

Xstrata has struggled in its bid to gain control of the target, due to a slow take up of the offer by Jubilee shareholders.

Jubilee executive chairman Kerry Harmanis reiterated that the offer price of $23 per share represented a significant premium to the historical Jubilee share price and that no superior offer or proposal from another party had emerged.

The company warned shareholders that if they did not accept the offer and the offer was to close on January 31 (in circumstances where Xstrata was not entitles to compulsorily acquire Jubilee shares), Jubilee would remain listed and its share price could fall below $23.

Jubilee shares traded even today at $22.65 each.