Glencore eyes finish line in Xstrata deal

Nov 20 2012, 15:35 IST
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Shareholders in miner Xstrata are expected to give the green light on Tuesday to a long-awaited $31-billion takeover by commodities giant Glencore.  (Reuters) Shareholders in miner Xstrata are expected to give the green light on Tuesday to a long-awaited $31-billion takeover by commodities giant Glencore. (Reuters)
SummaryShareholders in miner Xstrata are expected to give the green light on Tuesday to a long-awaited $31-billion takeover by commodities giant Glencore.

vote will not pass. Glencore will also not vote its shares.

Glencore, Xstrata's largest shareholder with a 34-percent stake, is offering 3.05 new shares for every Xstrata share to make good finally on its hopes of forging a mining and trading combine that can give it greater clout in global markets. The shares closed on Monday at prices implying a ratio of 2.92.

When Tuesday is over, however, shareholders and Glencore itself could be focusing on the task ahead, including potential non-core asset sales, an overhaul of Xstrata's project pipeline and even potential future deals. Glencore, Stanojevic said, is one of few unashamed buyers at a time of frugal spending.

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