All eyes on Anglo update ahead of Xstrata report

MINING giant Xstrata is braced to post disappointing results at its interims tomorrow, but the focus will be on its nil-premium merger with rival Anglo American.<br /><br />Xstrata made the approach for a &ldquo;merger of equals&rdquo; back in June, but was met with hostility by Anglo, which last week reported a 69 per cent drop in underlying profits to $1bn (&pound;598m) for the first six months of the year.<br /><br />Anglo said at the time that the terms of the deal were &ldquo;totally unacceptable&rdquo;.<br /><br />Xstrata is limited in its ability to speak out on the proposed deal by Takeover Panel rules, but is expected to highlight its core strengths, to entice Anglo&rsquo;s shareholders.<br /><br />&ldquo;We expect the company to do all it can to allow investors to draw their own conclusions over what Xstrata may be able to bring to a merged entity,&rdquo; ING&rsquo;s Nick Hatch said at the weekend.<br /><br />Anglo, under the directorship of Cynthia Carroll, has been under fire for its management structure. Industry sources say Xstrata&rsquo;s Mick Davis&rsquo; management style would be welcomed at Anglo.<br /><br />As the company recently put out a detailed production report, numbers in tomorrow&rsquo;s results are not expected to shock.