views

Anglo: put up or shut up

THE Takeover Panel has given miner Xstrata three weeks to &ldquo;put up or shut up&rdquo; on its proposed merger of equals with Anglo American.<br /><br />The Panel, which monitors mergers and acquisitions in the UK, has given Xstrata, led by Mick Davis, until 20 October to bid for Anglo, headed by Cynthia Carroll.<br /><br />Anglo, which has opposed the nil-premium merger on the grounds it undervalues the business, approached the Takeover Panel earlier this week to force Xstrata to formalise its offer, or to walk away for six months.<br /><br />If the two merge it would create a new mining giant with a market capitalisation of $68bn (&pound;42.7bn).<br /><br />The decision by the Takeover Panel leaves Xstrata with the options of either formalising its original proposal, which Anglo has already snubbed, sweetening its bid, or walking away.