LONDON--The board of mining company Xstrata PLC (XTA.LN) is
close to approving the offer by commodities trader and producer
Glencore International PLC (GLEN.LN), the Sunday Telegraph
reported, without citing sources.
The approval, which values one Xstrata share at 3.05 Glencore
shares, is expected Wednesday, according to the U.K. newspaper,
citing sources close to Xstrata. A banking official said it was
possible Xstrata would request an extension.
Xstrata held a meeting Friday with independent, non-executive
directors to discuss shareholder sentiment. At the meeting, Ivan
Glasenberg, Glencore's Chief Executive, offered reassurances to
Xstrata senior managers, promising them they would be allowed to
run the mining assets of the group if the deal went through, the
Telegraph said.
Glencore last week said it increased its all-share offer for
Xstrata in a last-ditch effort to save the deal from collapse. The
deal has faced opposition from some of Xstrata's largest
shareholders after Qatar Holding LLC, Xstrata's second-largest
shareholder with a 12% stake, said it would vote against the deal
at the original 2.8 share swap ratio.
The position of Qatar Holding remains unclear, the paper
said.
Glencore and Xstrata have been seeking shareholder and
regulatory approval for a tie-up since February.
Xstrata declined to comment on the report.
Full story:
http://www.telegraph.co.uk/finance/newsbysector/industry/mining/9545750/Xstrata-board-to-back-merger.html
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