Xstrata finally on board with Glencore merger.
The long-awaited merger between commodity giants Glencore and Xstrata could finally go ahead after proposals were revised.
The board of mining firm, Xstrata have now backed plans which could allow the biggest merger of the year to go ahead. There were ongoing talks over the weekend in an attempt to beat a deadline set by the City takeover panel.
The merger had become something of a stockmarket saga after shareholders revealed they were unhappy with original proposals which included enormous bonus deals for top managers.
The latest concessions allow Xstrata shareholders to hold a separate vote on the issue of bonuses, meanwhile the merger can proceed.
Ivan Glasenberg, Glencore's Chief Executive had previously made amendments to the bid to appease discontentment from Qatar Holdings, one of Xstrata's biggest shareholders. The sovereign wealth fund believed that Xstrata shareholders would be be short-changed by the planned takeover.
The takeover would create a commodities superpower as Xstrata is dominant in the coal and metal markets, while Glencore is the world's biggest commodities trader.
Glencore's shares rose 1.5 per cent after the Xstrata board revealed their support for the takeover.
Independent Television News Limited 2011. All rights reserved.
Independent Television News Limited 2012. All rights reserved.
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|Publication:||Independent Television News Limited (ITN)|
|Date:||Oct 16, 2012|
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