Costello: No objection to Xstrata bid for WMC =3 Melbourne

AAP General News (Australia)
02-11-2005
Costello: No objection to Xstrata bid for WMC =3 Melbourne

Other conditions require Xstrata to undertake consultation with the Department of Industry
Tourism and Resources on the terms of any third party marketing arrangements in respect
of uranium.

The treasurer said he welcomed Xstrata chief executive Mick Davis' assurance regarding
Xstrata's commitment to the standards of corporate governance and disclosure associated
with the London Stock Exchange and its plans to appoint an Australian resident to the
Xstrata board.

Xstrata's $8.4 billion takeover bid for Australia's WMC Resources Ltd is a hostile
offer, of $7.20 a share, and required approval from Mr Costello on the advice of the Foreign
Investments Review Board (FIRB).

Political and business groups have lobbied against the bid on the grounds it would
give Xstrata control over WMC's vast uranium deposits at its Olympic Dam mine in South
Australia.

Western Australia's Premier Geoff Gallop business has also opposed the takeover offer,
saying the Swiss group had show it was not a good corporate citizen after it abandoned
its vanadium mine in the state.

Xstrata confirmed its interest in WMC in October last year when it said it intended
to offer WMC shareholders $6.35 a share for their stock.

The bid was increased to $7.20 on February 2.

The WMC board has urged shareholders not to accept the offer.

Xstrata has said it would update shareholders on February 18, on whether it intended
to extend the bid.

Xstrata Plc paid $4 billion for copper and coal producer MIM Holdings Ltd in 2003.

AAP

KEYWORD: WMC 3 MELBOURNE

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