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Xstrata offer to Anglo shareholders

Xstrata “’ sweetens
its Anglo offer
London, England — MININGREVIEW.COM — 13 July 2009 – Swiss-based Xstrata – the fifth largest diversified metals and mining company in the world – will offer a sweetener of up to US$8.10 billion (R65 billion) to shareholders of rival mining giant Anglo American, as it ups the stakes in the battle to take over its rival.

Reporting this from here, Reuters quoted the Observer citing sources as saying Xstrata would raise the money via a rights issue because its debt-laden balance sheet had made it difficult to justify further borrowings.

“Anglo shareholders are in favour of a merger deal in principle, but they want better terms than the nil-premium, all-share merger that Xstrata proposed in June,” the report said. It added that Xstrata was willing to consider taking a smaller stake in the enlarged company.

Xstrata has been mulling its options after Anglo last month rejected proposals for a merger that would have created a mining giant valued at more than £40 billion (R528 billion).

Xstrata was unavailable for comment.