Shareholders await prospectus for Glencore-Xstrata merger
The prospectus outlining the creation of a £50bn-plus commodities empire will be sent to shareholders of the two FTSE-100 group's involved this week.
Xstrata spun-out of commodities trader Glencore as a collection of coal assets 11 years ago, but is now set to rejoin its former parent in a "merger of equals". Glencore boss Ivan Glasenberg has long harboured hopes of bringing Xstrata back into the fold and retained a 34 per cent stake in the company.
However, Mr Glasenberg has angered some Xstrata investors by not offering a premium to compensate for what will be a riskier merged group. Instead, he has allowed Xstrata to fill the top jobs – Mick Davis and Sir John Bond will retain their chief executive and chairman titles respectively.
Investors will pore over the prospectus for details of Mr Davis's retention plan. There is speculation that he will only lead the combined group for a year or two and then allow Mr Glasenberg, who will be deputy chief executive, to take over.
However, it is understood that there will be a strong incentive plan to encourage Mr Davis to lead the company for some time. Mr Glasenberg would still also hold the title of president.
The merger faces a potential Xstrata shareholder rebellion and needs approval from European antitrust regulators.
South Korea ferry passengers who were told to stay put 'got trapped' aboard sinking ship
Are beards attractive? Ryan Gosling says yes, but science says no. Take the A-list facial hair challenge and find out who's right
Oscar Pistorius trial: Defence witness 'unqualified' to testify
Andre Johnson: Wu-Tang Clan-discovered rapper severed his penis and jumped from LA building
Oscar Pistorius trial: Defence witness contradicts athlete's version in new blow for defence team
The food poverty scandal that shames Britain: Nearly 1m people rely on handouts to eat – and benefit reforms may be to blame
US Navy christens huge $3 billion destroyer ship USS Zumwalt that appears as a fishing boat on enemy radar
Scottish independence: It is the English who should be on their knees, begging the Scots to vote ‘No’
Nigel Farage fatigue? Half of voters ‘immune’ to Ukip’s appeal
Nigel Farage on Have I Got News For You: Ukip leader ridiculed over expenses and party 'fruitcakes'
Nigel Farage: I’m taking on the status quo, and the Establishment’s fighting back
- 1 Poveglia: 'World's most haunted island' up for sale...is anyone brave enough to buy it?
- 2 Babies cry at night to stop mothers procreating, scientists claim
- 3 24 people applied for the 'world's toughest job', here are their interviews
- 4 Andre Johnson: Wu-Tang Clan-discovered rapper severed his penis and jumped from LA building
- 5 Mrs Doubtfire 2: Robin Williams set to star in sequel to 1993 comedy
iJobs Money & Business
£150.00 per week: QA Apprenticeships: This company has been providing on site ...
£221.25 per week: QA Apprenticeships: This company is a well established Inter...
£40000 - £50000 per annum: Harrington Starr: Client Relationship Manager - SQL...
£35000 - £50000 per annum: Pro-Recruitment Group: Take your chance to join the...