Glencore prepared to offer 3.05 shares per Xstrata share
Glencore's attempt to rescue the merger deal with Swiss mining giant Xstrata involves the upping of its offer to 3.05 Glencore shares per Xstrata share but also abandons the idea of this being a 'merger of equals'.
Glencore's attempt to rescue the merger deal with Swiss mining giant Xstrata involves the upping of its offer to 3.05 Glencore shares per Xstrata share but also abandons the idea of this being a 'merger of equals'.
The board of Xstrata revealed it has has received a provisional proposal from Glencore International to amend the terms of the proposed merger between Glencore and Xstrata.
Adding the caveat that the proposal is still open to negotiation, Xstrata revealed that as well as increasing the merger terms from 2.8 Glencore shares per Xstrata share, the new proposal envisages changes to the proposed governance arrangements, including Glencore Chief Executive Officer (CEO) Ivan Glasenberg assuming the same role at the combined group, and the ability for Glencore to structure the transaction as a takeover offer or as a scheme of arrangement of Xstrata.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
The original proposal had Xstrata's current CEO, Mick Davis, taking on the CEO role at the combined entity - dubbed "Glenstrata" by the media - with Glasenberg as his deputy.
A resolution will be proposed at Xstrata's Court Meeting and the New Xstrata General Meeting to adjourn the meetings to a date to be fixed and notified to shareholders, to give Xstrata's independent directors a chance to mull the new offer.
Earlier in the day, Glencore revealed it had adjourned the Extraordinary General Meeting convened to vote on the proposed merger, as there had been some last minute developments.
JH
-
Zoopla: UK property supply hits eight-year high ahead of general election
News More homeowners are putting their properties up for sale but many are relisting after failing to find a buyer last year - is now a good time to buy?
By Marc Shoffman Published
-
What’s happening to the NatWest share sell-off? Impact of general election 2024 explained
The UK government has held shares in NatWest Group since the 2008 Financial Crisis. But a plan to sell off a large chunk of them appears to have been delayed.
By Henry Sandercock Published