Xstrata and Glencore set new vote date

XSTRATA AND Glencore International set September 7th as the new date for shareholders to approve their proposed combination, …

XSTRATA AND Glencore International set September 7th as the new date for shareholders to approve their proposed combination, gaining time to win investor backing to create the fourth-largest mining company.

Xstrata re-arranged the vote, originally set for yesterday, to allow changes to the documents of the so-called merger of equals after retention bonuses for executives were altered, it said in a statement.

Glencore shareholders had initially been due to meet yesterday to approve the deal, valued at about £17 billion at current prices.

At stake is the outcome of the largest takeover deal announced this year.

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Glencore, which in February offered 2.8 of its shares for each one in Xstrata, has had talks with Qatar Holding after the sovereign wealth fund and second-largest investor in the Swiss coal producer called for a higher offer.

“This new date suggests a soft deadline for a possible agreement on terms with the Qataris of August 24th,” which would give enough time for a revised bid, Jason Fairclough, an analyst at Bank of America said in a note to clients. – (Bloomberg)