In an effort to placate a growing backlash from Xstrata PLC
(XTA.LN) shareholders over Friday's aggressive reworking of the
proposed "merger of equals", Glencore International PLC (GLNCY,
0805.HK, GLEN.LN), chief executive Ivan Glasenberg has also offered
compromises over the role of Mick Davis, his opposite number at
Xstrata, and over the structure of the proposed deal, The Daily
Telegraph reported Monday.
Mr. Glasenberg is now prepared to see Mr. Davis remain as chief
executive of the combined group for six months before passing him
the reins--and potentially allow him to exit with a bigger pay-off
than the GBP8 million he would take under his existing contract,
The Telegraph said. He would also be entitled to shares, currently
worth about GBP28 million, awarded under various incentive schemes,
The Telegraph said.
In a further concession, Glencore is now proposing to keep the
deal's original legal structure, requiring approval from 75% of
shareholders, with the commodity trader unable to vote its own 34%
stake, The Telegraph said.
Mr. Glasenberg's rethink came after he split the miner's
shareholders this weekend with an offer that raised the terms--to
3.05 Glencore share instead of 2.8--but added the sting that he
would take the top job, effectively ousting Mr. Davis, The
Telegraph said.
Xstrata complained on Friday that the revised bid, at a premium
of 17.6% to the undisturbed price, was "significantly lower than
would be expected in a takeover," The Telegraph reported.
Newspaper Web site: http://telegraph.co.uk
-Dow Jones Newswires; dennis.baker@dowjones.com
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