Analyst R Profiti of Credit Suisse maintains his “neutral” rating on LionOre Mining International Ltd (ticker: LM2A). The 12-month target price has been raised from C$16 to C$18.50.

In a research note published this morning, the analyst mentions that the company has entered into a C$18.50 per share takeover agreement with Xstrata Plc. The transaction values Lion Ore Mining International at C$4.5 billion on a fully diluted basis and has a breakup fee of C$130 million, the analyst says. Xstrata has 19% of LionOre Mining International’s outstanding shares locked up, which limits the possibility of the latter company receiving any competing bid, Credit Suisse adds.

source news : newratings.com