Glencore takes final shot at Xstrata

Sept. 10, 2012 at 7:49 PM

BAAR, Switzerland, Sept. 10 (UPI) -- Commodities trader Glencore International said take it or leave it on a new bid it made for Xstrata after shareholder Qatar Holding rejected a previous offer.

The new bid comes to 3.05 of shares of Glencore, a Swiss firm that also is in the mining business, for every share of Xstrata, the British-Swiss mining giant, which would value the combined conglomerate at $90 billion, The New York Times reported Monday.

Wealth fund Qatar Holding, the investment fund for the Middle East country, was among the major shareholders that said they would vote against the previous 2.8 per share bid.

Glencore said in a statement Monday it "will not increase the merger ratio further" than its 3.05 per share bid.

The new offer comes with a different executive strategy. Mick Davis, chief executive officer of Xstrata, would take over the combined company, then step down after six months. He would then be replaced by Glencore CEO Ivan Glasenberg.

With the news Xstrata closed Monday up 1.23 percent to 12.50 pounds ($19.99) on the London Stock Exchange. Glencore's stock fell more than 3 percent to 370 pounds ($591.67).

Related UPI Stories
Latest Headlines
Trending Stories
Vatican: Pope's meeting with Kim Davis not a show of support
Potential male contraceptive found in study with mice
Cancer and height are linked, new study shows
Hacker may have exposed data of 15 million T-Mobile customers
Education Secretary Arne Duncan to step down in December