Glencore CEO: Debate On Xstrata-Glencore Merger Now Focused On Ratio
First Published Friday, 4th May 2012 05:40 pm - © 2012 Dow Jones
ST. GALLEN, Switzerland -(Dow Jones)- The chief executive of Glencore International PLC (GLEN.LN, GLNCY, 0805.HK) said Friday that most shareholders like the proposed merger of equals with Anglo Swiss miner Xstrata PLC (XTA.LN) but the debate is now on focused on the share-swap ratio.
"Most shareholders like the deal but shareholders want more, they want a better ratio and that's what they are asking for," Ivan Glasenberg told an audience at the St. Gallen Symposium.
When the conference moderator asked if Glencore would be flexible in terms of the swap ratio of 2.8 Glencore shares for every Xstrata share, he said: "I can't comment right now."
Xstrata's shareholders are due to vote on the deal in July after the offering document is issued later this month. Some Xstrata shareholders have already publicly stated that they don't think the ratio is sufficient.
The merger would create a mining juggernaut with a market capitalization of $90 billion.