Buyout group raises offer for Australia's Indophil

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The consortium, comprised of investment groups Crosby Capital Ltd and the Alsons Group and Indophil Chief Executive Richard Laufmann, raised the offer to A$1.28 per share in cash plus a share in a new exploration venture in the Philippines.

It had previously offered A$1.28 in cash only.

Xstrata is also bidding A$1.28 a share, or A$503 million (235 million pounds) for Indophil in hopes of gaining full control of the giant Tampakan copper deposit in the southern Philippines.

Indophil's board recommends shareholders accept the new offer from the consortium, called Stanhill. Indophil closed unchanged at A$1.33 on Wednesday.

The new offer includes one share in a wholly-owned subsidiary of Indophil called New Exploration.

If the bid succeeds, New Exploration will hold Indophil's interests in mine prospects across the Philippines, excluding Tampakan, which the consortium values between A$10 million and A$15 million.

Xstrata already owns a big chunk of Tampakan after paying Indophil $41 million for a 62.5 percent stake. Indophil retained 34.2 percent, with a right to acquire a further 3.3 percent. The deposit holds 11.6 million tonnes of copper and 14.6 million ounces of gold, which geologists believe can be extracted at a cost that is a fraction of today's copper and gold prices. Discovered in 1991, the mine has never left the drawing board, dogged by environmental and economic problems, political instability and laws restricting foreign ownership.

($1=A$1.15)