Xstrata postpones vote on $90-bn Glencore merger
07 Jul 2012
Swiss diversified miner Xstrata Plc has delayed its proposed merger with fellow commodities giant Glencore International Plc, by postponing the shareholders vote on the all-share merger of the two equals scheduled for next week.
In a regulatory submission Xstrata said the extraordinary general meeting convened on 12 July is proposed to be adjourned, subject to the passing of an ordinary resolution to adjourn the meeting.
The new date for the adjourned Xstrata general meeting will be posted to shareholders shortly, the company said.
Since the merger was announced in February, Qatar Holding, the gas-rich gulf nation's sovereign wealth fund has increased its stake in the miner to 11 per cent, becoming its second-biggest shareholder after Glencore, which holds a 34-per cent stake.
Qatar Holding has reaffirmed its stand for a better offer from Glencore. Last week, the fund said that it supports the merger but is ''seeking improved merger terms.'' (See: Qatar threatens to torpedo Glencore-Xstrata deal)
Qatar Holding is seeking an exchange ratio of 3.25 shares of Glencore for each share of Xstrata against the offered 2.8 shares. Glencore holds 34-per cent stake in Xstrata.
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