Anglo's snub may be a ruse

<div>ALTHOUGH Anglo American last night rebuffed Xstrata&rsquo;s bid for a tie-up, industry experts say its brush-off is just a ruse to get more money from the deal.<br /><br />&ldquo;There&rsquo;s minimal benefit for Anglo, but maximum for Xstrata as the deal stands. Anglo has good knowledge of any costs and synergies that could be made with a tie-up, as the two miners talked a year ago,&rdquo; one source said.<br /><br />The companies have similar market capitalisations; Anglo is worth &pound;21.3bn while Xstrata is valued at &pound;20bn.<br /><br />Analysts say that any synergies between the two companies would have to be be based on cultural change.<br /><br />&ldquo;There is asset overlap in coal and copper, and lesser overlap in platinum and zinc, so there are real synergies to be earned should the two companies merge,&rdquo; Macquarie Research said yesterday.<br /><br />But it added that &ldquo;the lion&rsquo;s share of the potential synergies&rdquo; would come from the organisational, operational and cultural change that would filter though the organisation, &nbsp;with Xstrata management focusing on some of the quality Anglo assets that have not performed well in recent years.</div>