Anglo: put up or shut up
THE Takeover Panel has given miner Xstrata three weeks to “put up or shut up” on its proposed merger of equals with Anglo American.
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.
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.
If the two merge it would create a new mining giant with a market capitalisation of $68bn (£42.7bn).
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.