Mining giant Xstrata has reacted cagily to the latest offer from Glencore in the ongoing merger talks between the two firms.
Glencore has upped its share swap offer, from 2.8 times to 3.05 times, after negotiations with Xstrata's 12% shareholder, the Qatarai sovereign wealth fund, Qatar Holding.
Those negotiations were seen to have sidelined the Xstrata board, turning the merger into something more akin to a hostile takeover.
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
On Monday morning though Glencore confirmed it wanted to keep Xstrata's Chief Executive Mick Davies as the new CEO of the combined group for six months, before he would hand the reins to Glencore's Ivan Glasenberg.
Other reports have suggested Xstrata's Chairman, Sir John Bond, would also keep his job, while significant management retention fees could also be paid.
Whether this is enough to salve the bruised egos of the Xstrata team is a moot point. It now falls to the company's non-executive directors to consider whether to put the final deal to shareholders. They have now set a deadline of 07:00 on Monday September 24th for the announcement.
BS
-
Divorce financial settlement fights surge – why it pays to agree terms earlyLawyers expect more court battles as tax rises and sharp falls in asset values make divorcing financially more difficult.
-
Emotional investing: what is it and how you can avoid itAre you an emotional investor? Your feelings could be damaging your long-term investments, but here's how to stay rational when the markets are turbulent.
