Xstrata blocks Indophil buyout

London-listed Xstrata has snookered a management buyout of Aussie mining group Indophil by taking a blocking stake.

Xstrata abandoned a A$545million (£254.9million) hostile takeover bid last month after the buyout group sweetened its offer for Indophil.

The two firms are jointly planning a $3billion (£1.69billion) mine at the Tampakan site in the Philippines, one of South-East Asia's largest untapped copper deposits.

Xstrata today agreed to buy a 17.83% stake in Indophil for A$1.17 a share, or A$82 million, from Lion Selection.

Indophil fell 36% to 76 cents on the Australian stock exchange after investors realised the move had blocked management plans to take control of the company.

Xstrata said it had taken a "strategic stake" and did not plan to increase its holding.

Lion Selection said the transaction was "a better alternative than awaiting the outcome of the conditional Stanhill offer".