SO as expected, Xstrata’s shareholders are kicking up a fuss over the premium Glencore is offering to pay for the company, barely a year after blocking a similar deal before Glencore’s record listing last May.
With current talks rumoured to be moving towards a premium as low as a single digit figure, investors are unlikely to be impressed – particularly as the share price had already jumped 11 per cent since Wednesday’s close, before the talks were announced.
Add two fiery personalities at the top of each company, throw in competition authorities presumably chomping at the bit to get involved, and you’ve got a heady mix of possible delays and hurdles.
The City is desperate for a mega merger to break the deal drought of recent months, but investors should be wary of jumping the gun when there’s still so much still up in the air.
