STOCKS NEWS EUROPE-Braemore drops on Jubillee Plat offer

Shares in Braemore Resources BRR.L tumble 32 percent as news of Jubilee Platinum's (JLP.L) all-share offer for the company fails to inspire investors.

The slump in Braemore's share price reflects the assumption the deal undervalues the platinum and nickel producer, traders say.

Jubilee shares retreat 6.6 percent as retail investors had been speculating that the mining exploration company would itself be the target of a bid from one of the larger players, which proves unfounded, one analyst says.

However, FinnCap analyst Joe Lunn says: "the deal will enable Jubilee to control more of the value chain and offer an intermediate product for refinement".

"We believe the combined company will contain a suit of complementary mining and processing assets and will be well positioned to exploit the synergies between them."

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