Glencore faces sweetener call February 7, 2012 Glencore could be forced to boost its offer for Xstrata after two of the miner’s top shareholders said they would refuse to vote in favour of the £56bn merger. The two commodities giants unveiled a deal yesterday that would see Glencore shareholders pay an effective premium of 15.2 per cent on Xstrata’s pre-deal share price [...]
Glencore’s deal with Xstrata faces long road to clearance February 7, 2012 GLENCORE and Xstrata’s $90bn (£57bn) merger faces a long road to reach regulatory and competition clearance. While bigger commodities tie-ins have been cleared in the past – such as the deals that formed Rio Tinto and BHP Billiton – merging a clearing house with a miner could encounter new hurdles, analysts said yesterday after the [...]
ADVISERS ON THE UK’S MEGA-MERGER February 7, 2012 Barclays Capital was a last minute entrant onto the adviser list, City A.M. learned yesterday. The Bob Diamond-led bank, which made it onto the Facebook IPO, declined to comment last night. BarCap’s inclusion came late on Monday night as the final touches were being put to the deal. Inclusion will help it maintain progress in [...]
Results give hint of synergies February 7, 2012 THE MANAGEMENT of Glencore and Xstrata yesterday released results for 2011 and calculated their potential combined firepower as they moved to convince shareholders to back a merger. Xstrata, the smaller of the two firms, generated revenues of $33.9bn (£21bn) for the full year to 31 December. Its net profit before exceptional items was up 12 [...]
Fund managers voice objections early February 7, 2012 THERE was a time when UK institutional shareholders could be relied upon to back mangements in their takeover aspirations, or at least keep quiet about the whole thing until they had had time to digest all the details. But yesterday both Schroders and Standard Life’s David Cumming (near left), accounting for a total of around [...]
FTSE subdued as hopes pinned on a Greek deal February 7, 2012 BRITAIN’S blue-chip index closed flat yesterday after staging a late recovery on talk that Greece was making progress towards securing a bailout deal and avert a messy default. The FTSE 100 gauge ended the session 1.94 points lower at 5,890.26 as gains among banks and oil stocks offset heavy losses in the mining sector, which [...]
Anglo chief confident in Chile fight February 7, 2012 ANGLO American’s shareholders are “very supportive” of the company in its legal battle against copper producing giant Codelco in Chile, chief executive Cynthia Carroll said yesterday. “We are very confident about our legal position. We have acted within our rights and we are in no doubt about that,” Carroll said at a mining industry gathering. [...]
FTSE flat as $90bn Glencore deal agreed February 7, 2012 The FTSE 100 was flat as further delays to Greek debt restructuring created more confidence sapping uncertainty – but the talk of the market was the agreed $90bn (£56bn) merger of Glencore and Xstrata. After rejecting a proposed new bailout deal which demands strict labour reforms and other austerity steps Greek leaders today meet in [...]
Glencore and Xstrata agree $90bn ‘merger of equals’ February 7, 2012 Glencore and Xstrata agreed an all-share merger worth $90bn (£56bn) in the mining industry’s largest ever deal, creating a commodities powerhouse spanning mining, agriculture and trading. The ratio is a 15.2 per cent premium to Xstrata shareholders compared with its share price last Wednesday before word leaked out about the merger talks, a joint statement [...]
Investors fear mining giants’ Granita deal could end in tears February 6, 2012 ADVISERS to Glencore and Xstrata were last night trying to convince investors that the proposed management team will be able to work together following the £50bn merger. Under the terms of the proposed deal, Xstrata chief executive Mick Davis is expected to be appointed chief executive of the combined group, with Glencore’s Ivan Glasenberg set [...]