Xstrata, the UK-listed mining group, is planning an A$7.4bn (€4.4bn) hostile bid for Australian rival WMC Resources after WMC's board spurned Xstrata's friendly merger offer last month.

Xstrata will offer WMC Resources' shareholders A$6.35 (€3.80) per share, the same offer which WMC's board rejected on October 28th. At the time WMC said it had the support of its major shareholders.