Xstrata and Glencore set new vote date
XSTRATA AND Glencore International set September 7th as the new date for shareholders to approve their proposed combination, gaining time to win investor backing to create the fourth-largest mining company.
Xstrata re-arranged the vote, originally set for yesterday, to allow changes to the documents of the so-called merger of equals after retention bonuses for executives were altered, it said in a statement.
Glencore shareholders had initially been due to meet yesterday to approve the deal, valued at about £17 billion at current prices.
At stake is the outcome of the largest takeover deal announced this year.
Glencore, which in February offered 2.8 of its shares for each one in Xstrata, has had talks with Qatar Holding after the sovereign wealth fund and second-largest investor in the Swiss coal producer called for a higher offer.
“This new date suggests a soft deadline for a possible agreement on terms with the Qataris of August 24th,” which would give enough time for a revised bid, Jason Fairclough, an analyst at Bank of America said in a note to clients. – (Bloomberg)