Sept. 7 (Bloomberg) -- Glencore International Plc raised its offer for mining company Xstrata Plc by 9 percent to overcome opposition from investors including Qatar’s sovereign wealth fund to the year’s largest takeover deal.
The commodities trader, owner of 34 percent of Xstrata, has proposed an increase to its February offer of 2.8 of its shares to 3.05 for each one in its target, Zug, Switzerland-based Xstrata said today in a statement. Glencore Chief Executive Officer Ivan Glasenberg will take on the CEO role in the combined group, reversing a plan for Xstrata’s Mick Davis to hold the role.
Xstrata investors including Qatar Holding LLC and Knight Vinke Asset Management LLC had sought a higher bid and last month said they would vote against the earlier proposal. In buying Xstrata, the largest exporter of power-station coal, Glencore is seeking to complete a five-year plan to create the world’s fourth-biggest mining company.
Glencore also proposed to change the offer from its current form as a so-called scheme of arrangement to a takeover.
“This is not a firm offer,” Xstrata said in a statement. “Any elements of the proposal remain subject to change and the proposal also remains subject to Xstrata board approval.”
Xstrata will seek to adjourn a shareholders’ meeting to vote on Glencore’s proposal to allow the revised offer to be considered, Chairman John Bond said in Zug.
--With assistance from Firat Kayakiran in London. Editors: John Viljoen, Stephen Cunningham
To contact the reporter on this story: Jesse Riseborough in London at jriseborough@bloomberg.net
To contact the editor responsible for this story: John Viljoen at jviljoen@bloomberg.net
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