Zug, Switzerland — 06 July 2012 – Global mining giant Xstrata has asked for the postponement of the July 12 special shareholder meeting which is to decide on its proposed merger with international commodities trader Glencore International.
Miningmx reports that, revealing this in a statement issued here, the company said that a new date would be announced shortly.
Numis Securities’ Andy Davidson said the delay was ostensibly due to the proposed changes to the controversial management retention packages, but would also buy more time for Glencore to thrash out an agreement with Xstrata shareholders over the merger ratio.
A Qatari investment fund that owns 10% in Xstrata has said it wanted 3.25 new Glencore shares for each Xstrata share – significantly more than the 2.8 shares currently on offer.
In a separate but related announcement, Australia’s Competition Commission said it would not oppose the merger. “South Africa still has to approve, but looks unlikely to put a spanner in the works at this stage,” Davidson said.
Source: Miningmx. For more information, click here.