Reuters reported that Xstrata has asked its bankers to study the viability of a new 3 billion pounds bid for platinum producer Lonmin.

The report which did not cite any sources said that the mining giant which has been restricted from making a new bid lower than the 3,300 pence it proposed for 12 months because of takeover rules would move for Lonmin again next month after instructing JP Morgan and Deutsche Bank to conduct a feasibility study ahead of a possible bid.

Xstrata bought a 24.9% stake in Lonmin in 2008.

Analysts at Liberum Capital said that they thought Xstrata was unlikely to move for Lonmin because a cash purchase of a 75% stake would take its net debt to around USD 16.8 billion or 50% gearing.

(Sourced from Reuters)