Xstrata mulls new merger proposal
on 10/09/2012 10:26:41
Glencore said it would offer 3.05 shares for every Xstrata share, a 9% hike on its previous bid of 2.8 shares, after one of its target's biggest investors - the Qatar sovereign wealth fund - refused to back the deal.
The revised proposals were reportedly drawn up at a meeting brokered by former prime minister Tony Blair and involving Glencore's chief executive Ivan Glasenberg and the Qatari prime minister.
Mr Blair works as a consultant for Xstrata adviser JP Morgan and also has close contacts with the Qatari royal family through his role as a Middle East peace envoy.
Under the new terms, Xstrata boss Mick Davis will become chief executive of the combined group but would step down after six months and be replaced by Mr Glasenberg.
Xstrata, which demanded more information on Friday after Glencore revealed the new terms, said it would consider the proposal and confirm whether it will put the deal to shareholders by September 24. Shares in Xstrata rose 3% today while Glencore's fell 1%.