As part of the revised deal, Xstrata CEO, Mick Davis will be replaced by Ivan Glasenberg as CEO of the enlarged company after 6 months
Glencore International Plc, which raised its bid for Xstrata Plc in an effort to win approval for the $36 billion takeover, said the sweetened offer for the Swiss mining company is final.
"The increased merger ratio represents a substantial premium for a company with a 34 percent shareholder," Glencore, the largest publicly traded commodities supplier, said in a regulatory filing. Today's statement confirmed the Baar, Switzerland-based company's Sept. 7 proposal of 3.05 shares, up from a February bid of 2.8 shares, for each one in Xstrata.
Glencore proposed that its Chief Executive Officer Ivan Glasenberg replace Xstrata CEO Mick Davis as head of the combined company. Davis will be CEO for six months before handing over to Glasenberg, Glencore said today.
Glencore unexpectedly called off a shareholder meeting on Sept. 7 to vote on the all-stock offer. Xstrata released a statement the same day saying it had received a proposal from Glencore with a 17.6 percent premium that was "significantly lower than would be expected in a takeover."
Davis is ready to step down, provided shareholders get the right price, a person familiar with the situation said of Xstrata, which is based in Zug, just two miles from Glencore's headquarters in Baar.
The proposal for Glencore's Glasenberg to be CEO of the combined group "represents significant risk" for retention of Xstrata's management team and goes against the merger of equals agreement made in February, Xstrata said Sept. 7.