BHP dismisses rumours of WMC bid

News reports of a pending bid for WMC Resources (WMC-N) by BHP Billiton (BHP-N) are “market speculation,” the company says.

A news report in the Sydney Morning Herald said that BHP had formed an internal committee to assess a bid for WMC, the subject of an A$6.35 offer from Swiss-based metal producer and trader Xstrata (XTA-L). WMC’s board has rejected the Xstrata bid and opened a data room for other potential bidders.

Xstrata has set a date of Jan. 13 for a shareholders’ meeting to approve its bid for WMC. If Xstrata shareholders approve the bid, the company’s offer for WMC would be conditional on WMC’s shareholders tendering a minimum of 90% of WMC shares to the offer, by a deadline Xstrata has only specified as January 2005. Foreign-investment and other regulatory approval by the Australian government is already in place.

Speculation earlier this month had Rio Tinto (RTP-N) preparing a bid, and others thought previously to be in the running were Inco (N-T), Phelps Dodge (PD-N) and Companhia Vale do Rio Doce (RIO-N). Still, no formal bid notifications have appeared.