Russia`s Norilsk Nickel extends offer for LionOre till July 23

Russian metals giant Norilsk Nickel [RTS: GMKN] said Wednesday it had extended its cash offer to acquire the common stock of Canada`s gold and nickel producer LionOre until July 23.

Norilsk Nickel, one of the world`s largest producers of nickel, palladium, platinum and copper, offered in early May to buy all of LionOre`s common stock, paying 21.50 Canadian dollars (US$19.42) in cash per share. The Russian metals giant subsequently increased its cash offer to 27.5 Canadian dollars (US$25.32) per common share.

"This extension will provide holders of LionOre`s convertible notes due 2011 with the opportunity to convert their notes into common shares of LionOre and deposit the resulting common shares into Norilsk Nickel`s offer," the metals giant said in a statement.

Norilsk Nickel and LionOre announced June 15 they had entered into a support agreement in the wake of the Russian metals giant`s offer to acquire all of LionOre`s outstanding common stock in a friendly, all-cash transaction for around 6.8 billion Canadian dollars (about $6.2 billion) or 27.5 Canadian dollars (US$25.32) per common share.

The Russian company earlier said it was seeking to acquire LionOre to boost its metals output, expand the geography of its operations, and implement "exciting projects."

LionOre is a global nickel and gold producer with operations in Australia, Botswana and South Africa. In 2006, LionOre produced 34,094 metric tons of payable nickel and 155.203 ounces of gold.

sections: Economics