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Glencore digs deeper for Xstrata


Glencore digs deeper for Xstrata


Swiss commodities trader Glencore raised its offer for miner Xstrata on the day of a deadline for it getting the go ahead.

The last minute sweetener is an attempt to rescue the merger deal which is one of the largest ever in the mining sector.

Qatar’s sovereign wealth fund, which is a major Xstrata shareholder with 12 percent of the stock, had been holding out for more.

Sources said “constructive talks” are underway with Qatar.

Glencore, which has a 34 percent stake in Xstrata already, is proposing an offer of 3.05 new shares for every Xstrata share it does not already own, up from 2.8, a statement issued by Xstrata said. Qatar demanded a ratio of 3.25 in June, but in recent days sources involved in the deal had said it could settle for a compromise.

A statement issued by Xstrata also said Glencore could consider changing the offer’s structure, from a complex arrangement that requires 75 percent approval without Glencore, to a straightforward takeover requiring a simple majority.

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