Bloomberg reported that coal exporter Xstrata is more likely to revive a takeover bid for Lonmin now that the platinum producer's shares have declined 30% from a peak in April 2010.

Mr Paul Galloway senior mining analyst at Sanford C Bernstein said that Xstrata was also better positioned to restart a bid after cutting the proportion of its debt to assets.

The mining company abandoned a hostile bid for Lonmin in October 2008 after a plunge in metal prices.

Mr Mick Davis CEO of Xstrata said in December 2009 that his company, which still owns a quarter of Lonmin, did not want to remain a minority investor.

Ms Pam Bell spokeswoman of Xstrata declined to comment when contacted at the weekend.

Mr Galloway wrote that "The possibility of Xstrata rebidding for Lonmin has increased. Xstrata is becoming rapidly de geared."

(Sourced from www.bloomberg.net)