Xstrata sets September deadline for Glencore deal

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.

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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