Lonmin boss sells shares
Lonmin chairman’s vigorous opposition to a £33-a-share takeover approach from mining group Xstrata is likely to be overshadowed by revelations that he sold his personal shares in the company for only £1 more than Xstrata’s offer.
Earlier this month John Craven, who has been chairman of Lonmin since 1997, defined Xstrata’s proposal as “opportunistic” and “ridiculous”, urging shareholders to reject a formal offer from the Anglo-Swiss mining group.
He said that Xstrata’s bid was an attempt to acquire Lonmin’s assets “cheaply”, undervaluing the company’s platinum mines in South Africa, which he said had a life in excess of 100 years and “outstanding growth prospects” both in the short term and in the long term.
But it has emerged that in February he sold two-thirds of his shares in the company at a price of £34, just £1 above Xstrata’s offer.
These revelations may weaken Craven’s attempt to fight off Xstrata’s hostile bid.
Meanwhile, Aquarius Platinum was yesterday reported to be in talks with South African miner Impala about mounting a joint takeover bid for Lonmin, rivalling Xstrata’s move.
