LONDON (ShareCast) - Lonmin still thinks Xstrata’s unsolicited £5bn bid approach fundamentally undervalues the platinum miner, but is willing to talk with its Swiss-based rival.

"In the case of a combination between Lonmin and Xstrata we think there could be quite significant synergies," chairman John Craven told Reuters.

"If Xstrata does come forward with an offer which is no longer conditional and one in a range where we might be getting somewhere close to where a deal could get done, I would hope they would find time in their busy schedules to meet.”

The admission came as the firm once again defended itself against the hostile approach, first announced on 6 August.

“It is not in the interests of Lonmin's shareholders, and the board will continue to oppose it vigorously,” Lonmin said.

“Based on reasonable assumptions for rating, production and platinum pricing, it is not difficult to see a share price for Lonmin well above Xstrata's £33 a share proposal, even before a control premium,” added Craven in an official statement.

He said the company continues “strongly” to advise shareholders to take no action and to reject the Xstrata deal.

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