Mining group Xstrata has adjourned the extraordinary general meeting at which shareholders were to vote on the recommended merger with Glencore International until a later date.
The company said that the delay is due to the proposed changes to the management retention awards announced last month. Shareholders were due to vote on the the Xstrata-Glencore merger on July 4th
The firm said on June 27th that, after a backlash from angry investors, it would pay management their retention awards in shares instead of cash and they will be subject to their future performances.
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The performance criteria linked to the awards for all directors will be based on realising additional cost savings as a result of the merger in the two years following the merger, expected to complete in early October.
"The new date for the adjourned court meeting and the new Xstrata general meeting will be contained in a supplementary scheme circular, expected to be posted to shareholders shortly," Thursday's statement said.
In June's announcement, Chairman Sir John Bond said: "Xstrata's executive management and Independent non-executive directors are sensitive to the perspective and concerns of our shareholders in the current environment and we have listened to the feedback we have received since publishing the merger documents. These amendments now allow shareholders to focus on the strategic rationale for the merger, which the independent non-executive directors continue to support."
"The independent non-executive Xstrata directors are convinced that the merger with Glencore is in the interests of all Xstrata shareholders and will provide the best platform for value creation in the future," he said.
BC
