Oct 28 2004
WMC advises that it recently received a conditional proposal from Xstrata to acquire WMC for $6.35 per share in cash by way of a scheme of arrangement.
The Board of WMC carefully considered the proposal and determined that it fails to recognize the current and prospective value of WMC’s assets and the strategic benefits to Xstrata or other potential acquirers. Accordingly the Board declined the proposal to put forward a scheme of arrangement to WMC shareholders.
WMC informed Xstrata that it was willing to have further discussions and that any material improvement in Xstrata’s proposal would be given due consideration in the context of alternatives available to WMC to maximize shareholder value.
Xstrata’s proposal was initially expressed to be indicative, non-binding and conditional. This morning Xstrata advised WMC that its proposal was no longer indicative and non-binding. However, it is still subject to conditions including funding. Shareholders are advised that it is uncertain as to whether the approach will lead to any proposal being put to WMC’s shareholders.
WMC will continue to keep its shareholders fully informed and a further announcement will be made in the event of any material developments.
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