LONDON--FTSE said Monday that following an appeal submission by
Glencore International PLC (GLEN.LN) in relation to the treatment
notice announced Jan. 15, and in particular with the treatment of
pre-existing restricted shareholders post merger with Xstrata PLC
(XTA.LN), the FTSE Policy Group finds in favor of the proposed
treatment.
MAIN FACTS:
-Subject to court sanction, and in conjunction with the scheme
timetable resulting changes to FTSE indices are expected to be
processed as follows:
-Two business days prior to the effective date of the
merger:
* FTSE will issue a notice confirming index changes resulting
from the Scheme, including the replacement for Xstrata in the FTSE
100.
* Xstrata will be deleted and all index changes (as notified two
days prior) become effective.
* Based on current share totals within FTSE indices and the 3.05
for 1 offer terms to Xstrata shareholders (excluding those shares
already owned by Glencore) it is expected that the share total for
the newly merged entity (expected to be named Glencore Xstrata )
will be 13.18 billion with an investability weighting of 66% in the
FTSE U.K. Index Series and a 75% banded weighting in the FTSE
Global Equity Index Series, or GEIS.
-Pre-existing restricted shareholders in the individual
companies will be carried forward to the merged entity and will not
be considered as new shareholders for the purposes of free float;
if a shareholding is currently restricted due to being greater than
10% in either company it will remain restricted unless it falls
below 7% within the merged entity.
-Write to Ian Walker at ian.walker@dowjones.com
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