Xstrata Board Said Near to Approving Glencore Bid
09/16/2012| 06:46pm US/Eastern
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LONDON--The board of mining company Xstrata PLC (>> Xstrata PLC) is close to approving the offer by commodities trader and producer Glencore International PLC (>> Glencore International Plc), the Sunday Telegraph reported, without citing sources.
The approval, which values one Xstrata share at 3.05 Glencore shares, is expected Wednesday, according to the U.K. newspaper, citing sources close to Xstrata. A banking official said it was possible Xstrata would request an extension.
Xstrata held a meeting Friday with independent, non-executive directors to discuss shareholder sentiment. At the meeting, Ivan Glasenberg, Glencore's Chief Executive, offered reassurances to Xstrata senior managers, promising them they would be allowed to run the mining assets of the group if the deal went through, the Telegraph said.
Glencore last week said it increased its all-share offer for Xstrata in a last-ditch effort to save the deal from collapse. The deal has faced opposition from some of Xstrata's largest shareholders after Qatar Holding LLC, Xstrata's second-largest shareholder with a 12% stake, said it would vote against the deal at the original 2.8 share swap ratio.
The position of Qatar Holding remains unclear, the paper said.
Glencore and Xstrata have been seeking shareholder and regulatory approval for a tie-up since February.
Xstrata declined to comment on the report.
Full story: http://www.telegraph.co.uk/finance/newsbysector/industry/mining/9545750/Xstrata-board-to-back-merger.html
Write to Jenny Gross at jenny.gross@dowjones.com
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