Glencore makes final offer for Xstrata |
| Financial Times - Sep 10, 2012 |
Glencore has announced its final offer for Xstrata, laying out a last-ditch compromise to salvage the $80bn merger that includes keeping Sir John Bond, chairman of the mining group, at the helm of the combined companies.
“Glencore confirms that it is an all-share merger and it will not increase the merger ratio further,” the company said on Monday.
Ivan Glasenberg, Glencore’s chief executive, on Friday unravelled the deal negotiated in February, saying he would only increase his offer to 3.05 Glencore shares for each of the miner’s if he could head the new company.
The trading house on Monday defended the new ratio, saying it “represents a substantial premium” for a company in which it already is the largest shareholder with a 34 per cent stake. Glencore said its offer of 3.05 shares represented a premium of 27 per cent; although on Friday Xstrata’s board, using a different baseline to calculate the offer, put the premium at just 17.6 per cent, saying it was “significantly lower than would be expected under a takeover”.
Read Full Article from Financial Times
- Posted: 2012-09-10 12:00:03
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