Anglo hopes to rid Xstrata’s $68-billion merger bid by 20 October
03 Oct 2009
The UK Takeover Panel has given a 20 October deadline to Xstrata to either make a formal offer for Anglo American or shelf the deal for six months
London-based diversified miner, Anglo American had approached the UK Takeover Panel on Tuesday, 29 September for a "put up or shut up" bid deadline of Xstrata's unsolicited merger offer.
The UK Takeover Panel, an independent body set up to supervise and regulate takeovers and mergers, has now set a 20 October deadline expiring at 5:00 pm for Xstrata to either announce a firm intention to make an offer for Anglo American under Rule 2.5 of the Takeover Code or announce that it does not intend to make an offer and walk away for six months.
"By 20 October, Xstrata will have had four months to either announce a formal offer or withdraw and Anglo American believes it is in the interests of the Group and its shareholders that this period of uncertainty is brought to an end" Anglo said in a statement.
Switzerland-based Xstrata, developed from a small player into one of the world's largest diversified mining groups in recent years through a series of acquisitions with operations spread over 19 countries in five continents, had sent a proposal in June to arch-rival Anglo American plc seeking its consideration for a possible $68- billion "merger of equals". (See: Xstrata proposes $68 billion merger deal with Anglo American)
The world's largest exporter of thermal coal, Xstrata said that the merger would create one of the biggest natural resources companies in the world with a combined value of around $68 billion that would be able to compete with larger rivals like Anglo Australian miners BHP Billiton and Rio Tinto as well as Cia Vale do Rio Doce (Vale) of Brazil.
