Swiss commodities trader Glencore International recently updated its takeover proposal for Xstrata, hoping to win shareholder approval before the merger deal either collapses or turns hostile. The new plan calls for Xstrata CEO Mick Davis to lead the combined companies for six months before turning the reins over to Glencore CEO Ivan Glasberg. Xstrata Chairman John Bond would chair the combined companies.

Glencore increased its offer to 3.05 Glencore shares from 2.8 and said it will not increase the merger ratio further. At the time of the announcement, Glencore and Xstrata were trading at an exchange ratio of 2.4:1. The big question is whether Qatar Holdings, Xstrata’s second largest shareholder at 12%, will find the increased offer acceptable.

Glencore could switch to a takeover offer with the consent of the U.K. takeover panel and Xstrata. It is currently unclear as to where either party stands should Glencore opt for this more aggressive route.

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