Xstrata has two weeks to decide on Glencore bid

A two-week deadline has been set for the independent directors of Xstrata to decide whether to recommend the revised, $36bn (£23bn) takeover bid for Glencore.

If approved, the deal would create an $80bn mining-to-commodities trading giant.

Xstrata said it had been asked by the Takeover Panel to respond to the new offer by 7am on 24 September. That will be six-and-a-half months after the two companies first announced their agreed merger.

In the meantime, Xstrata shareholder Knight Vinke has called on the directors to see if they can find a higher, third-party bidder.

The formal revised offer detailed yesterday - which emerged on Friday, minutes before Xstrata's shareholder meeting was set to vote down the original deal - contained relatively little new.

The offer has been raised from 2.8 Glencore shares to 3.05 shares for each Xstrata share. Glencore said this will not be increased and claims it represents a 27 per cent premium.

Xstrata's chief executive Mick Davis will take the same role in the merged company but step down "within six months", handing over to Ivan Glasenberg, the chief executive of Glencore and the single-largest shareholder in the new group.

As previously, Sir John Bond will become chairman of the new company and the board will be made up of equal numbers of non-executive directors from each company.

Glencore has asked Xstrata to look again at the £170m retention package offered to 73 of its top managers to ensure they stay on. Glencore wants this to be "acceptable to independent Xstrata shareholders".

That mainly means Qatar's sovereign wealth fund which holds 12 per cent of Xstrata and would have blocked the old deal. Following the intervention of the former prime minister Tony Blair, it is reserving judgement on the new offer.

Glencore is still pursing the deal as a scheme of arrangement which requires the backing of 75 per cent of Xstrata's independent shareholders, but reserves the right to turn it into an outright takeover bid if Xstrata agrees.

Start your day with The Independent, sign up for daily news emails
Arts and Entertainment
filmPoldark production team claims innocence of viewers' ab frenzy
Life and Style
Google marks the 81st anniversary of the Loch Ness Monster's most famous photograph
techIt's the 81st anniversary of THAT iconic photograph
News
Katie Hopkins makes a living out of courting controversy
people
News
General Election
ebooks
ebooksA special investigation by Andy McSmith
  • Get to the point
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Guru Careers: Pricing Analyst

£30 - 35k (DOE): Guru Careers: We are seeking a Pricing Analyst with experienc...

Ashdown Group: Treasury Assistant - Accounts Assistant - London, Old Street

£24000 - £26000 per annum + benefits : Ashdown Group: A highly successful, glo...

Ashdown Group: Sales Team Leader - Wakefield, West Yorkshire

£21000 - £24000 per annum: Ashdown Group: The Ashdown Group has been engaged b...

Ashdown Group: Head of Client Services - City of London, Old Street

£45000 - £50000 per annum + benefits : Ashdown Group: A highly successful, int...

Day In a Page

Revealed: Why Mohammed Emwazi chose the 'safe option' of fighting for Isis, rather than following his friends to al-Shabaab in Somalia

Why Mohammed Emwazi chose Isis

His friends were betrayed and killed by al-Shabaab
'The solution can never be to impassively watch on while desperate people drown'
An open letter to David Cameron: Building fortress Europe has had deadly results

Open letter to David Cameron

Building the walls of fortress Europe has had deadly results
Tory candidates' tweets not as 'spontaneous' as they seem - you don't say!

You don't say!

Tory candidates' election tweets not as 'spontaneous' as they appear
Mubi: Netflix for people who want to stop just watching trash

So what is Mubi?

Netflix for people who want to stop just watching trash all the time
The impossible job: how to follow Kevin Spacey?

The hardest job in theatre?

How to follow Kevin Spacey
Armenian genocide: To continue to deny the truth of this mass human cruelty is close to a criminal lie

Armenian genocide and the 'good Turks'

To continue to deny the truth of this mass human cruelty is close to a criminal lie
Lou Reed: The truth about the singer's upbringing beyond the biographers' and memoirists' myths

'Lou needed care, but what he got was ECT'

The truth about the singer's upbringing beyond
Migrant boat disaster: This human tragedy has been brewing for four years and EU states can't say they were not warned

This human tragedy has been brewing for years

EU states can't say they were not warned
Women's sportswear: From tackling a marathon to a jog in the park, the right kit can help

Women's sportswear

From tackling a marathon to a jog in the park, the right kit can help
Hillary Clinton's outfits will be as important as her policies in her presidential bid

Clinton's clothes

Like it or not, her outfits will be as important as her policies
NHS struggling to monitor the safety and efficacy of its services outsourced to private providers

Who's monitoring the outsourced NHS services?

A report finds that private firms are not being properly assessed for their quality of care
Zac Goldsmith: 'I'll trigger a by-election over Heathrow'

Zac Goldsmith: 'I'll trigger a by-election over Heathrow'

The Tory MP said he did not want to stand again unless his party's manifesto ruled out a third runway. But he's doing so. Watch this space
How do Greek voters feel about Syriza's backtracking on its anti-austerity pledge?

How do Greeks feel about Syriza?

Five voters from different backgrounds tell us what they expect from Syriza's charismatic leader Alexis Tsipras
From Iraq to Libya and Syria: The wars that come back to haunt us

The wars that come back to haunt us

David Cameron should not escape blame for his role in conflicts that are still raging, argues Patrick Cockburn
Sam Baker and Lauren Laverne: Too busy to surf? Head to The Pool

Too busy to surf? Head to The Pool

A new website is trying to declutter the internet to help busy women. Holly Williams meets the founders