By Alex MacDonald
LONDON--Standard Life Investments, a major shareholder in both
Xstrata PLC (XTA.LN) and Glencore International PLC (GLEN.LN),
which previously opposed the deal, said Friday that it was
supportive of the improved merger terms between the two
companies.
Commodities titan Glencore raised its offer for Xstrata to 3.05
Glencore shares for each Xstrata share just as Glencore and Xstrata
shareholders were set to vote on the original 2.8 share swap ratio
proposal.
Under the revised proposal announced by Xstrata, but without
Glencore's consent, Glencore Chief Executive Ivan Glasenberg will
now become the new CEO of the combined entity, which if realized,
would become the world's fourth largest diversified miner with a
market capitalization of more than $70 billion. Xstrata Chief
Executive Mick Davis was due to become the CEO of the combined
entity under the previous merger proposal.
"We are supportive of the improved terms and the changes to the
executive governance arrangements," said David Cumming, head of
Equities at Standard Life Investments in a statement.
"The deal will, we believe, enhance the growth prospects of the
combined group and consequently, as shareholders both of Xstrata
and Glencore, we are pleased with the proposed outcome," he
added.
He didn't say whether he would vote in favor or against the
deal.
Standard Life Investments owns a 1.42% stake in Xstrata and
0.81% stake in Glencore, according to the fund.
-Write to Alex MacDonald at alex.macdonald@dowjones.com