UK platinum producer Lonmin PLC yesterday repudiated market speculation that it was being targeted for a takeover bid by the Russian mining giant Norilsk Nickel.

Dow Jones quoted a Lonmin spokesman describing the speculation as 'rubbish', saying that similar rumours had abounded for some time.

Industry analysts are not in accord on the subject of whether Lonmin, the world's third largest producer of platinum, would be a wise investment for Norilsk.

Dow Jones quoted one London market observer as being of the opinion that Norilsk is unlikely to be able to afford an offer for Lonmin.

Lonmin shareholders, the source added, would be unlikely to accept any overtures from the Russian giant.

The rumours prompted a rise in Lonmin's share price - up three pence to 915p amidst heavy trading.

Meanwhile, Norilsk is currently in the process of purchasing a major holding in American pgm company Stillwater Mining.