Xstrata extends bid for Jubilee

Xstrata Nickel Australia Pty Ltd has been forced to extend its $3.1 billion takeover offer deadline for Jubilee Mines NL for a second time, after a slow take-up by the target's shareholders.

Xstrata's first extended its original deadline of December 17, 2007 earlier that month to January 31, 2008, but the company has now set a date of February 15 to clinch the deal.

In announcing the new deadline today, Xstrata said it has received acceptances to date amounting to 47.57 per cent of the issued capital in Jubilee, and intended to review its offer conditions by January 31, 2008.

Shares in Jubilee closed at $22.30 today, 70 cents below the Xstrata offer price of $23 per share

Xstrata said Jubilee had conducted a competitive sale process to obtain the best offer for Jubilee shareholders prior to its offer, but since the announcement of the takeover on October 29, 2007, there had been no indication that another bid would emerge.

The directors of Jubilee have unanimously recommended its shareholders accept the offer.