On Friday commodities giant Glencore raised its offer minutes before a vote on its merger with diversified miner Xstrata were to take place in the Swiss village of Zug. Following pressure from major Xstrata shareholder Qatar, Glencore upped its offer from 2.8 to 3.05 new shares for every Xstrata share it does not already own, valuing the deal at $80 billion. Glencore already owns 34% of fellow Swiss-based Xstrata and under the new terms Glencore CEO Ivan Glasenberg will lead the combined company and not Xstrata CEO Mick Davis, who had all along been slated to lead a ‘Glenstrata’. Now that the deal – announced at the beginning of February as a ‘merger of equals’ – has turned into something more resembling a hostile takeover, Xstrata’s board appears to have decided to launch a vigorous defence of the miner, the world’s number one thermal coal exporter and top five copper producer. Both Glencore and Xstrata are listed on the London Stock Exchange.
See http://www.mining.com/xstrata-97553/?utm_source=digest-en-mining-120909&utm_medium=email&utm_campaign=digest.
See also:
All-share $36 Billion Xstrata bid now final – Glencore
Xstrata CEO in line for £38m Glencore payout
Glasenberg grabs top job from Davis in new Glenstrata deal
Vote on Glencore-Xstrata merger delayed due to ‘developments overnight’
A failed deal with Glencore means a lonely road to growth for Xstrata